The disclosure that Harrisburg, Pa., must repay bond insurer Ambac Assurance Corp, roughly $30 million of additional interest “more than confirms the need” for scrutiny of the city’s financial recovery plan, city Controller Dan Miller said.

Miller’s comments follow revelations in court documents that the city must pay Ambac nearly $125 million -- well past the original estimate of $95 million -- over 20 years to cover past-due general obligation debt and some capital projects, including $51.6 million the city borrowed in 1997 to refinance debt on projects that included a Civil War museum.

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.