Dear Source,
Dec. 22, 2004 – The story Bonds to Fund Wastewater and Sewage Treatment Improvements stated "Mapp said the bonds from the 2004 series were ' oversubscribed.' Meaning, he said, 'There were more people wanting the bonds, than there were bonds.' This could be attributed to a decision by rating company Standard & Poor, to upgrade the bond's rating.'"
The reason the bonds were 'oversubscribed' was because the interest rate the USVI must pay was set too high for the quality of the bonds and current market conditions, causing the investors to fight over the securities at our expense.
By the way, the fees and charges the USVI paid were not disclosed in the article. In the past they have been unusually high as well.
It appears the USVI continues to 'lose' millions in corporate finance transactions, at taxpayer expense, in a territory starved for funding. In this case, for example, the savings probably could have funded the salaries of 100 police officers.
Warren Mosler
Christiansted

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