New Mexico – State Treasurer James Lewis has a new policy that will allow a greater investment of state money in certificates of deposit with New Mexico banks.
Up to $400 million can be invested in bank CDs. The investment cap was increased by $50 million.
Another change in policy will allow a portion of nearly $1.6 billion in bond proceeds to be invested with banks. That's means certificates of deposit with a longer maturity, such as those of at least a year instead of 90-day certificates that the treasurer's office has been investing in recently.
Lewis said Friday the change should provide longer term capital to banks, potentially allowing them to make more loans to local businesses and consumers.
Copyright 2010 The Associated Press.