Financial Meltdown Watch: Deal Reached for $1.4 Billion in Short Term Bonds
CHICAGO, Dec 15 (Reuters) – Illinois will go ahead with a much-needed $1.4 billion borrowing on Tuesday after a deal was reached with state constitutional officers on legal language issues related to fraud and bribery charges against the governor, officials said late on Monday.
“We are pleased to be moving forward with the short-term borrowing so that we can pay bills to organizations who are in urgent need of payment,” said Katie Ridgway, a spokeswoman for Gov. Rod Blagojevich in an e-mail.
“The comptroller, treasurer and attorney general joined our office in completing this transaction,” she added.
The federal charges filed against Blagojevich last week, accusing him of trying to sell political favors for campaign contributions and jobs, forced the debt sale to be postponed from Thursday to Tuesday. Madigan raised questions about certifying the debt sale while the governor’s legal problems hung over the state.