State's interest rates coming down

DavidIngram — Thu, 02 Oct 2008 16:44:35 -0400

The variable interest rates on some of North Carolina's state debt have started to return to lower levels.

Sara Lang, spokeswoman for the State Treasurer's Office, said the average rate has dropped about two percentage points since last week. The state has $855 million in variable-rate debt, about 12 percent of the total state debt.

The rates adjust weekly.

For about $500 million, the new weekly rate is an average of 5.66 percent. A week ago it was 7.58 percent. For about $355 million, the new weekly rate is an average of 5.36 percent. A week ago it was 7.49 percent.

The state was paying a rate of under 2 percent three weeks ago. Lang said the state budget assumes a 4 percent interest rate, blunting any immediate impact on taxpayers.

From August to September, the state's monthly payment on the $855 million in debt more than doubled from $1.2 million to $2.5 million.

newsobserver.com projects - State's interest rates coming down - Comments

State's interest rates coming down