Government

PFA Says Securitization Deal Would Survive at $10.50 Rum Cover Over Tax Rate, Expresses Confidence Congress Will Restore $13.25

Nathan Simmonds, the director of finance administration at the Public Finance Authority (PFA) is confident that the rate of reimbursement on excise taxes for rum will be re-adjusted by year’s end, giving the Government Employees’ Retirement System the additional funds it will need to sustain its operations. He also believes that the Matching Funds Securitization Corporation would be effective even if the rate remained at $10.50, though it would extend the agreement by seven years. The U.S. Virgin Islands is hoping to get a final, permanent “extender” on the amount of funds remitted by the federal government for excise taxes on rum produced in the territory and sold on the mainland.  “We strongly believe that we’re going to get the cover over extender during this calendar year, albeit it might be closer to the end of the year,” said Mr. Simmonds Tuesday during a  Committee on Budget, Appropriations & Finance hearing. “We have our Washington team constantly in touch with the members o...