SAN FRANCISCO — California will need to borrow $10.5 billion to meet its cash-flow needs for the rest of the fiscal year, starting with a $1.5 billion interim revenue anticipation note borrowing by Aug. 28, state finance officials announced this afternoon.

Because of the state’s budget crunch, since July 2 the State Controller’s Office has been issuing registered warrants, or IOUs, to creditors without legal or constitutional protection, to conserve cash for creditors who enjoy such protections, including bondholders.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.