Your NPR news source

Illinois' Treasurer to Pump an Extra Billion into Banks

SHARE Illinois' Treasurer to Pump an Extra Billion into Banks
Illinois' Treasurer to Pump an Extra Billion into Banks

Alexi Giannoulias (AP/Seth Perlman)

Illinois will pump a $1-billion into state banks and credit unions. State Treasurer Alexi Giannoulias says he’ll move the money from other state investments.

Listen to our conversation with Giannoulias.

Giannoulias says he hopes the cash injection will help ease the credit crunch in Illinois, making it easier for banks to give out loans.

GIANNOULIAS: We need to find ways to get money, get some liquidity, get some capital into these financial institutions, because without it, these local lenders are not going to be able to help families and small business owners keep their businesses up and running and maintain employment levels.

He says the state is also getting a good interest rate on the investment. Illinois already has $1.7-billion in Illinois financial institutions. Giannoulias says his family’s bank, Broadway Bank in Chicago, will not participate in the program.

I’m Adriene Hill, Chicago Public Radio.

The Latest