Delaware News

Treasurer Davis Prepares for Possible Default

Office of the State Treasurer | State Treasurer Colleen C. Davis | Date Posted: Tuesday, May 23, 2023


Words debt ceiling over jigsaw puzzle pieces with a picture of the U.S. Capital

Delaware State Treasurer Colleen Davis began taking proactive measures to protect Delaware’s financial interests in anticipation of a potential federal government default. The move comes after U.S. Treasury Secretary Janet Yellin said that, without an agreement to raise the nation’s debt ceiling by June 1, 2023, the federal government could default on its loan obligations.

“I remain committed to ensuring the security and the stability of Delaware’s cash and investments,” Treasurer Davis said. “Though I hope we see an agreement in Washington, my obligation is to protect the financial resources of the state and it’s residents in the event that we don’t.”

The state’s overall investment portfolio holds approximately $2.3 billion in U.S. Treasuries. A default on the part of the federal government could result in significant loss if an agreement is not reached.

“What’s important to know is that Delaware has resources to meet its financial obligations in the near-term without the money from the U.S. Treasury holdings,” Davis said. “As always, we have developed strategies to buffet the tide of financial turmoil in Delaware. We will continue to monitor negotiations in Washington and urge our leaders to come to an agreement.”

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Treasurer Davis Prepares for Possible Default

Office of the State Treasurer | State Treasurer Colleen C. Davis | Date Posted: Tuesday, May 23, 2023


Words debt ceiling over jigsaw puzzle pieces with a picture of the U.S. Capital

Delaware State Treasurer Colleen Davis began taking proactive measures to protect Delaware’s financial interests in anticipation of a potential federal government default. The move comes after U.S. Treasury Secretary Janet Yellin said that, without an agreement to raise the nation’s debt ceiling by June 1, 2023, the federal government could default on its loan obligations.

“I remain committed to ensuring the security and the stability of Delaware’s cash and investments,” Treasurer Davis said. “Though I hope we see an agreement in Washington, my obligation is to protect the financial resources of the state and it’s residents in the event that we don’t.”

The state’s overall investment portfolio holds approximately $2.3 billion in U.S. Treasuries. A default on the part of the federal government could result in significant loss if an agreement is not reached.

“What’s important to know is that Delaware has resources to meet its financial obligations in the near-term without the money from the U.S. Treasury holdings,” Davis said. “As always, we have developed strategies to buffet the tide of financial turmoil in Delaware. We will continue to monitor negotiations in Washington and urge our leaders to come to an agreement.”

image_printPrint

Related Topics:  , , , , ,


Graphic that represents delaware news on a mobile phone

Keep up to date by receiving a daily digest email, around noon, of current news release posts from state agencies on news.delaware.gov.

Here you can subscribe to future news updates.