Fri June 28, 2013
Mayor Taveras Supports Repayment of 38 Studios Bonds
Providence Mayor Angel Taveras is supporting the General Assembly’s inclusion of money to pay back bondholders who invested in failed video game maker 38 Studios. The legislative budget includes two and a half million dollars for the bondholders.
Opponents say not paying back the bonds will be less costly than coughing up a total of 90 million dollars over 8 years. They point to how Rhode Island isn’t legally required to pay back moral obligation bonds. But Taveras agreed with those who say that not paying the money would hurt the state’s credit rating and reputation.
“I am very concerned about the impact that it could have for the state and actually for all the cities and towns as well if we don’t fulfill that commitment. I think it was necessary and I support that. I understand why it was controversial to some degree but the alternative, I think, would have been worse," said Taveras
Fellow Democrats Lincoln Chafee and Gina Raimondo also support repaying the 38 Studios bonds, as do the two leaders of the General Assembly. Legislative Republicans oppose the move.
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Scott MacKay Commentary