Illinois State Treasurer Dan Rutherford Enhancing Linked Deposit Programs to Stimulate Illinois Economy
Office of the Illinois State Treasurer Dan Rutherford|Saturday, April 9, 2011
CHICAGO – April 8, 2011 – Illinois State Treasurer Dan Rutherford is announcing significant enhancements to the treasury’s various linked deposit programs to better serve the people of Illinois while also helping to stimulate the state’s economy.
Linked deposit programs function as a joint loan made by the Illinois treasury and lending institutions. The borrower receives reduced interest rates by utilizing an investment from the state treasury in addition to a modest interest rate from the partner lender.
Rutherford placed a moratorium on these programs shortly after being sworn-in until a private sector review could be completed on each. The volunteer audit committee has now completed their work, and Rutherford has decided to immediately re-launch the programs in a more efficient, streamlined manner while reducing the interest rates for borrowers. Each program will be reviewed again in six months to ensure that taxpayers are seeing a maximum benefit.
“I’ve met with leaders from lending institutions, I’ve listened to the concerns of many Illinois taxpayers, and I’ve thoroughly studied the recommendations of my volunteer auditing committee – all have expressed needed improvements to make these programs more beneficial in this economy,” said Rutherford. “I’ve decided to implement many of the suggestions offered. Going forward, we’ll be making interest rates more attractive on loans to farmers, small businesses, military personnel, people with disabilities, victims of natural disasters, and many others. As a result, jobs will be created and the state’s economy will get a boost.”
Additional details of the Illinois State Treasurer’s linked deposit programs can be found at www.treasurer.il.gov under the Invest in Illinois tab.
