Vermont makes short-term loans available to banks

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Vermont state government says it will do its part to help resolve the national credit crisis.

The state will make short-term investments totaling $13 million in local banks. The money will be used to make sure the banks have adequate working capital.

The state says the money is cash that’s on hand in the treasury until bills need to be paid at the end of the month.

The federal government will insure the investments through the Federal Deposit Insurance Corporation.

State Treasurer Jeb Spaulding says the program guarantees that the state’s investment will be safe. And the program also helps banks by giving them some short-term cash to make loans and other investments.

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