Michigan Borrows Record $3.3 Billion to Repay Jobless Benefits
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Michigan, whose joblessness led the nation during 2006-09, will issue $3.3 billion of variable-rate bonds -- its largest-ever sale, according to treasury officials -- to repay federal unemployment-benefit loans.
The two-year bonds underwritten by a unit of Citigroup Inc. were selling at a yield of 0.24 percent, said Tom Saxton, deputy state treasurer. That compares with estimated 3 percent interest on federal loans next year, Saxton said. Repaying the U.S. government by Dec. 31 will save as much as $100 million in interest and avoid federal penalties, he said.