Categories

A sample text widget

Etiam pulvinar consectetur dolor sed malesuada. Ut convallis euismod dolor nec pretium. Nunc ut tristique massa.

Nam sodales mi vitae dolor ullamcorper et vulputate enim accumsan. Morbi orci magna, tincidunt vitae molestie nec, molestie at mi. Nulla nulla lorem, suscipit in posuere in, interdum non magna.

Metro seeking $250M loan to ease cash flow problem

WASHINGTON (AP) – Metro will have to borrow $250 million due to a cash-flow crisis caused by increased federal scrutiny of the transit agency’s spending.

The Washington Post (http://wapo.st/1tTNnYe ) reports the Federal Transit Administration’s critical review of Metro’s contracting and procurement has prohibited the transit agency from automatically tapping federal funds to pay its bills for capital projects.

Now Metro must document expenses before federal money is released. That’s created a cash-flow problem in paying contractors on time.

Metro officials say they’re seeking a one-time $250 million loan to avoid having to cut staff or cancel contracts and building projects. The loan would be repaid with federal grants once Metro receives the funds.

But Metro will have to pay interest on the loan. Interest would be paid from the agency’s capital budget.

Information from: The Washington Post, http://www.washingtonpost.com

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Continued here:
Metro seeking $250M loan to ease cash flow problem

Comments are closed.