To the Editor, Press Journal The taxpayers should be delighted that U.S. Rep Bill Posey has raised the subject of what appropriate interest rate the US Government should attach to the All Aboard Florida loan. An accurate answer can be found in the recent loan of $405 million which was recently made to AAF, underwritten by Wall Street investment companies --- 12% for a five year loan. If a 30 year loan is desired the interest rate should be 22.8% our 1.9 times the rate of a 5 year loan. This ratio is exactly what the market says the US Treasury must pay for a 30 year versus 5 year borrowing (3.158% and 1.63%). Next the government must decide if AAF can pay the $428 million a year debt service required by a $1.875 billion, 30 year loan with a 22.8% rate. If 32 trains a day, every day of the year each have 400 passengers, AAF would need $91.60 from each passenger merely to repay the loan! Would our Governor, 2 US Senators and 25 Congressman make this loan? If not would they please follow the good example of Congressmen Posey and Murphy ---- write their own letters to the Comptroller General about this disaster of a loan application by AAF. Nicholas Schaus 30 August, 2014
Posted on: Mon, 01 Sep 2014 11:55:55 +0000