New Jersey officials are negotiating a temporary bank loan with JPMorgan Chase & Co. (JPM) of as much as $2.25 billion to cover a revenue gap in its new fiscal year, the Wall Street Journal reported, citing unidentified people familiar with the deal.
The state is considering tapping a so-called bridge loan, or credit line, to cover bills coming due early in the year beginning July 1 as it prepares to sell tax-revenue anticipation notes to cover expenses until it collects taxes, the newspaper said on its website. The notes would repay the bank loan.
The newspaper said state officials are negotiating with JPMorgan following competition for the business. A bank spokesman, whom the newspaper didn’t identify, declined to comment. A spokesman for New Jersey, also unidentified, also declined to comment.
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