AMERICAN SAMOA GOVERNMENT SEEKS $5 MILLION CREDIT LINE WITH BANK OF HAWAI‘I

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By Fili Sagapolutele

PAGO PAGO, American Samoa (March 27, 2001 - PIDP/CPIS)---Governor Tauese Sunia is urging the territorial legislature to pass legislation that would authorize the local government’s treasurer to negotiate a credit line of not more than $5 million with the Bank of Hawai‘i.

Tauese said the credit line is necessary to protect against fluctuating and inconsistent revenue streams.

"While over the course of the fiscal year, the total of projected revenues may be received, the funds do not come in at consistent levels, but are subject to peaks and valleys," Tauese informed lawmakers.

He said the fixed obligations of the government continue and must be met.

"The periods of ‘valleys’ in revenue collection make sustaining all government operations extremely difficult and jeopardizes smooth functioning of the government," said Tauese.

"Approval of this legislation would provide protection during those periods of slumping revenue collections," the governor added.

One of the critical needs of the government is to be able to meet its bi-weekly $2.5 million payroll.

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