For Immediate Release
November 16, 2016
Administration Draws another $600 Million from PA Treasury Line of Credit
$300 million remains in the original $2.5 billion credit line
Harrisburg, PA - The Pennsylvania Treasury today announced that the administration drew an additional $600 million against the $2.5 billion line of credit that Treasury extended to the commonwealth in August. The funds were needed to prevent the state’s General Fund from running out of money.
The state has now borrowed $2.2 billion against the credit line, after the previous $400 million draw in August and $1.2 billion in September. The line of credit has $300 million remaining.
“No family or business can expect to continually borrow money just to pay the bills and the state is no different. Just yesterday the state’s Independent Fiscal Office once again reported that Pennsylvania faces a long-term structural deficit, and it is clear that the situation will only get worse if nothing is done.”
Pennsylvania Treasurer, Timothy Reese
The $2.5 billion line of credit has an interest rate of 0.75 percent on the money borrowed against it. The state is required to pay back the loan to Treasury by June 30, 2017.
Click here to read a news release from August 16 that contains details about the line of credit and additional materials on the state’s historical borrowing and its impact.
Scott Sloat, 717-783-4098, 717-695-1789 or firstname.lastname@example.org.
The Pennsylvania Treasury is an independent department of state government led by the state treasurer, who is elected every four years. The department's primary duty is to safeguard and manage the state's public funds. It invests state money to generate income on behalf of the citizens of Pennsylvania, reviews and processes payments for state government agencies, and serves as custodian of more than $100 billion in state funds. Key Treasury programs include Unclaimed Property, PA 529 College Savings Program and the Board of Finance and Revenue.