Illinois Pays Top Dollar To Borrow

Illinois Pays Top Dollar To Borrow

Compared to states with top credit ratings, Illinois will reportedly pay almost two percent more in annual interest on the $550 million it borrowed for infrastructure on June 16.

That adds up to tens of millions of dollars over the coming years.

“That’s a pretty steep penalty,” said Tom Schuette, a partner at Gurtin Fixed Income Management. “But when you consider where Illinois is at—with no budget, with a backlog of bills, with a slew of other issues—you could question whether or not that’s a steep enough penalty to pay.”

Illinois has the lowest credit rating of any state.