Revised Laws of Saint Lucia (2023)

PART IX
RELATIONS WITH THE PARTICIPATING GOVERNMENTS

37.   Fiscal agent and banker to the Government

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   (1)   The Bank shall be the banker, fiscal agent of, and adviser to, the Participating Governments on monetary and financial matters and shall be the depository of funds of those Governments: Provided that in such cases, for such periods of time, and on such other terms and conditions as may be agreed between each Participating Government and the Bank—

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      (a)     the Bank may act in such capacities to government boards and agencies, social security funds and other statutory bodies and local government bodies, and

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      (b)     the Participating Government may maintain working balances with and generally use the services of other financial institutions.

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   (2)   The Council, as well as any Participating Government may request the Bank to render advice and to furnish reports on matters relating to the purposes of the Bank as set forth in Article 4 of this Agreement.

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   (3)   It shall be the duty of the Bank to inform and advise the Council and any Participating Government concerning any matter that in the opinion of the Bank is likely to effect the achievement of the Bank's purposes.

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   (4)   The Bank may represent any Participating Government at any international conference at which its attendance is requested by such Participating Government.

38.   The bank as depository of the Government

The Bank shall, upon designation by any Participating Government, serve as the depository and fiscal agency of, and the institution through which dealings by the Participating Government shall be conducted with, international financial institutions of which that Participating Government is a member, and other agencies and countries.

39.   Advances to Government

Except in accordance with Article 31 paragraph (2) sub-paragraph (d) and Article 40, the Bank shall not, directly or indirectly—

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   (1)     make advances to any Participating Government, its boards and agencies, social security funds and other statutory bodies and local government bodies;

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   (2)     acquire the notes, bills, securities or other evidence of debt of any Participating Government, its boards and agencies, social security funds and other statutory bodies and local government bodies; or

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   (3)     acquire the notes, bills, securities or other evidences of debt guaranteed by any Participating Government, its boards and agencies, social security funds and other statutory bodies and local government bodies.

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   Provided that this Article shall not operate to prevent the acquisition by the Bank of securities transferred to it by a Participating Government to evidence a liability in accordance with Article 24 paragraph (5) or Article 29 paragraph (4).

40.   Advances to Government

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   (1)   The Bank may subject to such terms and conditions as the Board may prescribe—

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      (a)     make temporary advances to each Participating Government to meet its seasonal needs in an amount not to exceed during a given financial year of that Participating Government 5% of its average annual recurrent revenue of that Government as determined by the Bank, over the 3 preceding financial years.

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      (b)     purchase, sell, discount and rediscount treasury bills, issued by any of the Participating Governments, payable in Eastern Caribbean Dollars, forming part of a public issue, and maturing within ninety-one days of the date of their acquisition by the Bank; but the holding of treasury bills of any one Government at any one time, shall not exceed ten percent of the average actual recurrent revenue of that Government as determined by the Bank over the three preceding financial years; (Substituted by S.I. 16/2017)

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      (c)     purchase and sell publicly issued securities (other than treasury bills) of or guaranteed by any of the Participating Governments payable in Eastern Caribbean Dollars and maturing in not more than 15 years from the date of their acquisition by the Bank, but the holding of such securities at any one time other than securities held under subparagraph (d) and (e), shall not exceed 15% of currency issued or deemed by the Bank to have been issued by it and in circulation and other demand liabilities:

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   Provided that the percentages mentioned in sub-paragraphs (a), (b) and (c) shall, be reviewed by the Council annually and approved or varied either generally or specifically in respect of any Participating Government;

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      (d)     invest in securities of the Participating Governments to any amount and to mature at any time on behalf of staff and superannuation funds and other similar funds of the Bank;

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      (e)     purchase and sell bonds of any Corporation established under the authority of any Participating Government or Governments for the express purpose of financing development within the territory or territories thereof: Provided that—

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         (i)     the bonds by their terms shall mature in not more than 10 years from the date of their acquisition by the Bank,

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         (ii)     repayment of their interest and principal shall be guaranteed by the Participating Government or Governments under whose authority the Corporation is established,

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         (iii)     the Bank may, upon default of the issuer, whether in whole or in part, invoke the guarantee under (ii) solely by notification to the guarantor or guarantors, and satisfy itself to the full extent of the obligation outstanding, the amount thereof being deemed to have been accelerated for the purpose of the guarantee, by charging the profits of the Bank distributable to the guarantor or the guarantors pursuant to Article 6 paragraph (4) during the year of default and succeeding financial years of the Bank;

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         (iv)     the amount of bonds held in respect of any territory by the Bank under Article 40 paragraph (1) sub-paragraph (e) of this Agreement shall not at any time exceed 2¹/₂% of the average annual recurrent revenue of that Government, as determined by the Bank, over the prior 3 financial years.

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   (2)   Without limiting the generality of the Provisions of paragraph (1) the Bank is expressly authorised to—

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      (a)     make advances to any Participating Government on such terms and conditions as may be agreed, in respect of subscriptions and other payments resulting from or incidental to, membership in any international financial institution established under governmental auspices its participation in any account thereof and any transactions and operations undertaken in connection therewith ; and

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      (b)     assume pursuant to agreement with each Participating Government, its liabilities due and outstanding to financial institutions in respect of special deposits required of them as of the date on which the Bank shall be deemed to have been established in accordance with Article 54 paragraph (2) of this Agreement : Provided that each such agreement shall specify the terms and conditions of repayments to the Bank by the Participating Government of the liabilities thus assumed, and that Participating Government shall obligate itself not to require further special deposits of any financial institutions operating within its territory.

41.   Agent of governments for administration of exchange control and regulations of off-shore banking

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   (1)   The Bank shall act as agent for the Participating Governments in the administration of any law or regulation relating to exchange control; and in accordance with such instructions as the Council may, from time to time, issue in the licensing of any offshore banking or offshore trust operation.

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   (2)   The Bank shall monitor the operations of offshore financial institutions in accordance with the laws or regulations under which such financial institutions have been licensed to operate and shall take account of such guidelines as the Council may from time to time, issue for this purpose.

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   (3)   Returns, statements, accounts or information required to be submitted to the Participating Governments under the provisions of any such law or regulation shall be simultaneously submitted to the Bank.