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Orange County close to default

Wednesday 28 June 1995 23:02 BST
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Orange County close to default

Orange County, California, is all but certain to default on nearly $1bn of debt next month following the defeat on Tuesday of a proposed sales tax increase, Moody's Investors Service said yesterday A proposed half- cent rise in the county tax, which would have raised about $130m a year, was the linchpin of a rescue plan for the bankrupt county Investors and analysts took it as proof that its wealthy residents were unwilling to take the steps necessary to avoid default

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