Howard hopes to save millions by refinancing

December 09, 1997|BY A SUN STAFF WRITER

Howard County officials hope to save several million dollars by refinancing a portion of the county's debt at lower interest rates.

Interest rates for high-grade municipal bonds peaked at nearly 7 percent in 1994. They have fallen gradually since then, approaching 5 percent recently.

County officials estimate they could save about $3 million -- $150,000 a year on average -- by refinancing $62 million of debt at current interest rates. The savings could be higher if interest rates continue to fall, as some forecasters expect.

If the County Council approves the plan, the refinancing through a bond sale likely would happen in February.

Pub Date: 12/09/97

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