WASHINGTON -- The District of Columbia will save at least $10 million in borrowing costs by using a swap as part of an upcoming $332 million general obligation bond sale designed to eliminate the city's accumulated deficit, the city's top financial officer said.

Ellen M. O'Connor, the city's deputy mayor for finance, said last week the district will go to market with insured, variable-rate obligations, which it will then "swap" with a counterparty to obtain fixed-rate debt service payments. The counterparty will be a firm selected from a list of candidates that responded to an earlier request for qualifications.

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