9 Mar 2006

American Samoa governor reserved about bond bank plan

10:20 am on 9 March 2006

American Samoa's Governor has reservations about a bond bank proposal being floated by the US Environmental Protection Agency and the Department of the Interior.

Togiola Tulafono says he has not fully endorsed the idea until he is fully satisfied that it is not going to affect the flow of grant monies to American Samoa.

The bond bank would group together insular areas and would be an alternative funding source to finance infrastructure projects and pay debts.

Governor Togiola says the agencies involved continue to claim that grant monies will not be affected.

But he says American Samoa needs to receive assurances in the event of a Federal Aid Intercept.

He says in the event of a loan default the Feds can intercept any amount from grants coming to country.66