Treasurer's Office Monitoring Risk Of U.S. Debt Default

Oct 16, 2013

Dan Rutherford
Credit Brian Mackey/WUIS

State Treasurer Dan Rutherford says he's monitoring the debt ceiling showdown in Washington and the impact that it could have on the state's finances.

Congress is still searching for deal that would raise the country's cap to borrow more money in order to pay its bills.  The government has been partially shut down for weeks as Democrats and Republicans haggle over spending.

Treasurer Rutherford's office says it utilizes U.S. Treasury securities as an important investment tool for the state's portfolios. The state holds $1.2 billion in U.S. Treasury bills that will mature over the next month.

Rutherford says planning ahead for a possible short-term default will allow the state to meet its payments on bonds and interest on a short-term basis.