The Y2K loan proposal negotiated by former Gov. Roy L. Schneider shortly before he left office has been approved by Gov. Charles W. Turnbull and sent to the Legislature for ratification.
A $32.4 million joint loan from Banco Popular and I.B.M. will pay for an assessment of computer compliance issues arising from the year 2000 "millennium bug" and purchase the hardware and software necessary to comply. The proceeds of the loan will also cover its closing costs, including fees and expenses.
The loan is structured so that only interest will be payable for the first 12 months. The first debt-service payment will be due 18 months after the loan is closed, and will be payable semi-annually thereafter. This is to avoid any major impact during fiscal year 1999, according to a release from Government House.
Turnbull, in his transmittal letter to the Legislature, stressed that failure to prepare for Y2K could result in disaster for the territory.
"We must certify that the 911 emergency system, heart defibrillators and kidney dialysis machines will be operational on Jan. 1, 2000," he said.
The governor credited the Y2K task force organized under the former administration for making significant progress on the issue, but said more work must be done.
"Analysis done thus far by this administration indicates those computer systems at the Bureau of Internal Revenue, Department of Finance, Roy L. Schneider [and] Juan F. Luis Hospital and the Department of Health will shut down unless they are modified to be Y2K compliant," he said, echoing his predecessor's concerns.
Turnbull urged the Legislature to give the proposal its highest priority so funding for Y2K compliance will be available as soon as possible.
