Revised Laws of Saint Lucia (2023)

RESOLUTION OF PARLIAMENT TO AUTHORIZE THE MINISTER OF FINANCE TO GUARANTEE BORROWING BY THE MILLENNIUM HEIGHTS MEDICAL COMPLEX – SECTION 65(1)

Commencement [20 March 2023]

RESOLUTION

WHEREAS it is provided under 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 under section 40(1) of the Millennium Heights Medical Complex Act, that with the approval of Parliament, signified by a resolution, the Minister of Finance may guarantee any approved borrowing by the medical complex;

AND WHEREAS it is further provided under section 40(2) of the Millennium Heights Medical Complex Act, that a borrowing guaranteed shall in default of payment by the medical complex be charged on the Consolidated Fund;

AND WHEREAS the Minister of Finance considers it necessary to guarantee a line of credit from 1st National Bank Saint Lucia Limited (the Bank) to the Millennium Heights Medical Complex in the amount of XCD23,050,000.00, consisting of —

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    (a)     an overdraft limit of XCD6,500,000.00 to assist with working capital requirements;

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    (b)     a loan of XCD5,000,000.00 to assist with operational expenses for the purchase of new equipment;

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    (c)     a loan of XCD11,400,000.00 to satisfy a debt of the Ministry of Finance; and

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    (d)     a Corporate Credit Card with a limit of XCD150,000.00 to assist with monthly expenses;

AND WHEREAS for the overdraft limit of XCD6,500,000.00 —

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    (a)     the term of the overdraft is for 12 months;

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    (b)     interest is payable at 6% per annum, subject to a change in line with the general level of interest rates; excess rate of 17%;

AND WHEREAS for the loan of XCD5,000,000.00 —

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    (a)     the term of the loan is for 180 months;

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    (b)     repayment is $36,985 monthly, with effect from one month after drawdown with the last payment plus any outstanding principal and interest due 180 months after full drawdown;

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    (c)     interest is payable at a rate of 4% per annum, subject to a change in line with the general level of fluctuating rates;

AND WHEREAS for the loan of XCD11,400,000.00 —

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    (a)     the term of the loan is for 180 months;

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    (b)     repayment is for $84,324 monthly, with effect from one month after drawdown with the last payment plus any outstanding principal and interest due 180 months after full drawdown;

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    (c)     interest is payable at a rate of 4% per annum, subject to a change in line with the general level of fluctuating rates;

AND WHEREAS for the Corporate Credit Card with a limit of XCD150,000.00 —

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    (a)     repayment is monthly;

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    (b)     interest is payable in accordance with Visa terms and conditions;

BE IT RESOLVED that Parliament authorizes the Minister of Finance to guarantee a line of credit from 1st National Bank Saint Lucia Limited (the Bank) to the Millennium Heights Medical Complex in the amount of XCD23,050,000.00, consisting of —

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    (a)     an overdraft limit of XCD6,500,000.00 to assist with working capital requirements;

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    (b)     a loan of XCD5,000,000.00 to assist with operational expenses for the purchase of new equipment;

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    (c)     a loan of XCD11,400,000.00 to satisfy a debt of the Ministry of Finance; and

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    (d)     a Corporate Credit Card with a limit of XCD150,000.00 to assist with monthly expenses;

BE IT FURTHER RESOLVED that —

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    (a)     for the overdraft limit of XCD6,500,000.00 —

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      (i)     the term of the overdraft is for 12 months,

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      (ii)     interest is payable at 6% per annum, subject to a change in line with the general level of interest rates; excess rate of 17%;

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    (b)     for the loan of XCD5,000,000.00 —

    1.  

      (i)     the term of the loan is for 180 months,

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      (ii)     repayment is $36,985 monthly, with effect from one month after drawdown with the last payment plus any outstanding principal and interest due 180 months after full drawdown,

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      (iii)     interest is payable at a rate of 4% per annum, subject to a change in line with the general level of fluctuating rates;

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    (c)     for the loan of XCD11,400,000.00 —

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      (i)     the term of the loan is for 180 months,

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      (ii)     repayment is for $84,324 monthly, with effect from one month after drawdown with the last payment plus any outstanding principal and interest due 180 months after full drawdown,

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      (iii)     interest is payable at a rate of 4% per annum, subject to a change in line with the general level of fluctuating rates;

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    (d)     for the Corporate Credit Card with a limit of XCD150,000.00 —

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      (i)     repayment is monthly,

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      (ii)     interest is payable in accordance with Visa terms and conditions.