ANAHEIM : Council OKs Terms on Line of Credit
The City Council on Tuesday authorized acceptance of a $75-million line of credit from a Japanese bank to help pay back a $95-million loan that is due April 4.
The council unanimously voted to accept an offer of credit from the Industrial Bank of Japan, which offered an estimated 30-day interest rate of 6.17%.
The bank was the lowest bidder among the nine financial institutions that extended credit proposals to the city. The agreement can be terminated at any time by the city, officials said.
Anaheim borrowed the $95 million to invest in the county’s investment pool, which collapsed late last year due to risky investments by Robert L. Citron, then the county treasurer-tax collector.
The city had a total of $169 million invested in the fund at the time of the collapse, which represents about 20% of its total investment portfolio.
Although a settlement agreement with the pool’s investors is in the process of being hammered out, any cash disbursements from the fund would not be available until after the city’s loan is due, officials said.
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