Financial Times FT.com

California IOUs set for trade

By Nicole Bullock in New York

Published: July 15 2009 19:30 | Last updated: July 15 2009 21:50

A market is set to emerge this week in Californian IOUs as the persistence of the state’s budget crisis is making it increasingly difficult to exchange these emergency instruments for cash.

California is printing $3bn of IOUs for businesses, individual taxpayers and local counties in lieu of cash. It has sent more than $450m of them to court-appointed attorneys, county-run health schemes and taxpayers awaiting rebates, among others.

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