US state steps in to meet city’s debt cost

By Aline van Duyn in New York
Published: September 12 2010 20:12
Last updated: September 12 2010 22:38

The state of Pennsylvania has stepped in to help its capital city Harrisburg avoid a default by advancing next year’s state aid so that the money can be used to make a $3.3m bond interest payment due this week.

On Sunday, Ed Rendell, the governor of Pennsylvania, announced a $4.3m cash transfer and said missing the bond payment was “not an optionâ€