–Plan Will Save Taxpayers About $162 Million
WASHINGTON (MNI) – The U.S. Treasury and Transportation Departments
Friday announced a debt refinancing plan for the financially strapped
Amtrak railroad company, saying it will save the taxpayers about $162
million in subsidies, funds that could be used for high-speed rail.
Under the agreement, the government will exercise early buyout
options on 13 existing high-cost leases over the next three years, the
statement said. The $420 million up-front cost wills average
approximately $582 million in future payments, in effect saving the
taxpayer about $162 million.
“Refinancing these leases will save taxpayers money and while
continuing the President’s vision of improving passenger rail service
across the country at a lower cost,” U.S. Treasury Secretary Tim
Geithner said in the statement.
Transportation Secretary Roy LaHood said the savings achieved
“represent funds that could be used to support development of high-speed
rail.”
The plan is the result of a Treasury study on ways to restructure
Amtrak debt, much of which is paid by the government.
Amtrak revenue rose 9% in the 2010 fiscal year compared to the
previous 12 months, and ridership increased 5.7%, the statement said.
** Market News International Washington Bureau: 202-371-2121 **
[TOPICS: M$U$$$,MGU$$$,MFU$$$]