RESOLUTION OF PARLIAMENT TO AUTHORIZE THE MINISTER OF FINANCE TO GUARANTEE A STUDENT LOAN LINE OF CREDIT ON BEHALF OF THE SAINT LUCIA DEVELOPMENT BANK – SECTION 65(1)
Commencement [18 December 2023]
RESOLUTION
WHEREAS it is provided by section 65(1) of the Public Finance Management Act, (the Act), that the Minister of Finance may, by an affirmative Resolution of Parliament, grant a guarantee in accordance with an enactment;
AND WHEREAS it is further provided under section 69(2) of the Act that a guarantee issued by the Government or a contingent liability created by the Government in accordance with the Regulations under the Act, and in accordance with another enactment shall be charged on and paid out of the Consolidated Fund;
AND WHEREAS it is provided by section 27(3) of the Saint Lucia Development Bank Act, that with the approval of Parliament, the Government may guarantee in such manner and on such conditions as it may think fit, the repayment of principal and the payment of interest and other charges in respect of any borrowing by the Saint Lucia Development Bank;
AND WHEREAS the Minister of Finance considers it necessary to guarantee an amount of USD3,704,000.00 (the loan) from the Special Funds Resources of the Caribbean Development Bank (the Bank) to guarantee a student loan line of credit on behalf of the Saint Lucia Development Bank;
AND WHEREAS the loan is repayable in 17 years commencing on the first due date after the expiry of 4 years following the date of the loan agreement, or on a later due date as the Bank specifies in writing;
AND WHEREAS the repayment of the loan is in 68 equal or approximately equal and consecutive quarterly instalments on the 1st day of January, the 1st day of April, the 1st day of July and the 1st day of October of each year after a grace period of 4 years following the date of the loan agreement, or on a later due date as the Bank specifies in writing;
AND WHEREAS interest is payable at a rate of 0.75% per annum on the amount of the loan disbursed and outstanding;
BE IT RESOLVED that Parliament authorizes the Minister of Finance to guarantee an amount of USD3,704,000.00 (the loan) from the Caribbean Development Bank to guarantee a student loan line of credit on behalf of the Saint Lucia Development Bank;
BE IT FURTHER RESOLVED that —
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(a) the loan is repayable in 17 years commencing on the first due date after the expiry of 4 years following the date of the loan agreement, or on a later due date as the Bank specifies in writing;
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(b) the repayment of the loan is in 68 equal or approximately equal and consecutive quarterly instalments on the 1st day of January, the 1st day of April, the 1st day of July and the 1st day of October of each year after a grace period of 4 years following the date of the loan agreement, or on a later due date as the Bank specifies in writing;
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(c) the interest is payable at a rate of 0.75% per annum on the amount of the loan disbursed and outstanding.