New Jersey Seeking Bank Loan to Meet the Current Cash Shortage
28th October, 2011 - Posted by admin - No Comments
As per reports, the officials of New Jersey are busy negotiating a bank loan of almost 2.25 million dollars to balance their temporary cash shortage. Such fiscal stress is being experienced by various states across the U.S. due to the economic meltdown and bank loan seems to be the easiest solution for such a situation.
The bank loan will help the state to make payments of bills and economic settlements as soon as the new Fiscal year begins. New Jersey is making a different move by taking a bank loan from a major commercial bank. However the terms of the bank loan (credit line) are yet to be finalized.
Documentation required for a bank loan takes much less time compared to a municipal bond, but interest rates on bank loans can reach up to 9% if the state delays the repayment.
Posted on: October 28, 2011
Filed under: credit problems
No Comments
No Comments
Leave a reply