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ASEDA bond collateral is a 100% collateral of ASG proceeds | American Samoa
Though it is really no mystery - it only needs a hard read through the legal language to comprehend what the ASEDA directors have done: Put quite plainly, they promised 100% of the government of American Samoa's revenues, personal incomes tax, corporation tax and consumption tax, as security for $169 million in loan liabilities.
And if ASEDA fails to meet an average of $6 million a year term of repayment, the buyer of the Bonds has the unlimited right to withdraw funds directly from ASG-Treasury. As the" First Lender", the right of the creditor excludes the ASG wage and salary statement and the state running costs.
Under the bonds, Fono also has no right to prohibit the bondholders from withdrawing monies directly. ASG has enough cash to make the payment, even if it would be obliged to cut the number of twin and three-bedroom workers currently on the official salary list.
However, this depends on something dramatic not going down, such as StarKist's departure from the country - this would certainly call into question ASG's capacity to pay bonds extending until 2035. ASEDA's pledge to "Revenue as Collateral" is described in detail in the bonds. ASDEDA alleges that the Manu'a ship will make $1.5 million annually; the Territorial Bank of American Samoa (TBAS) is considered by ASEDA to be lucrative; and fiscal revenues from the planned Philippine grocery facility (800 employees) are another sources of revenues mentioned as a debtor.
ASEDA, for example, has committed to the Ministry of the Interior to provide collateral for the loans. A number of expert resources question the legitimacy of the use of appropriated state resources for ASEDA missions. "As we can see, we are still experiencing pecuniary difficulties in every part of our administration and the economy," Lolo said, and added that he is already asking the Home Office to push ahead with the allotment of American Samoa for the first three months of this year to make it easy for the administration to meet its commitments to the communities and the population.
We all know that StarKist Samoa is now shut down for five-week periods, and we will have some trouble with the closure of the cannery," he went on to say. Yet, currently the governor has only two income policies in effect, and the remainder, along with the government's additional budgetary bill, which he said, could not be financed because the income accounts did not lead accordingly.
He said this involved both actions to increase revenues to support public finance and personalised support to put more expenditure in the consumers' pockets, and added that the draft legislation should be seen together in combination and not as distinct, independent suggestions, as the Fono dealt with them.
He is expected to resubmit the revenues measure for review by Fono next year.