Legislators OK Haley's request to borrow $123M for Volvo

Legislators OK Haley's request to borrow $123M for Volvo

By SEANNA ADCOX

Associated Press

COLUMBIA, S.C. (AP) - A legislative panel approved Gov. Nikki Haley's request to borrow $123 million for infrastructure promised to Volvo after criticizing the creative, interest-only financing required by the terms.

The Joint Bond Review Committee on Wednesday unanimously authorized borrowing the amount as Haley insisted, despite an influx of cash. But legislators made clear they don't want the treasurer's office to proceed under the approved terms.

Senate President Pro Tem Hugh Leatherman called the arrangement an irresponsible scheme.

The unconventional financing requires paying $87 million in interest because the state is approaching its limit for the type of borrowing Commerce wrote into its deal with Volvo.

A Ways and Means Committee proposal would put $70 million toward the project, leaving $53 million to borrow.

Haley supports using the surplus to pay down debt.

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