RESOLUTION OF PARLIAMENT TO BORROW FOR CAPITAL OR CURRENT EXPENDITURE – IMPLEMENTATION OF THE UNLEASHING OF THE BLUE ECONOMY OF THE CARIBBEAN PROJECT – SECTION 63(1)(a)
Commencement [19 July 2022]
RESOLUTION
WHEREAS it is provided by section 63(1)(a) of the Public Finance Management Act, (the Act) that the Minister of Finance may, by an affirmative Resolution of Parliament, borrow from a bank or other financial institution for the capital or current expenditure of Government;
AND WHEREAS it is further provided by section 64 of the Act that money borrowed by the Government must be paid into and form part of the Consolidated Fund;
AND WHEREAS the Minister of Finance considers it necessary to borrow an amount of USD18,000,000.00 from the International Development Association for the implementation of the Unleashing of the Blue Economy of the Caribbean Project;
AND WHEREAS the service charge is the greater of —
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(a) the sum of three-fourths of one per cent (3/4 of 1%) per annum plus the Basis Adjustment to the service charge; and
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(b) three-fourths of one per cent (3/4 of 1%) per annum on the withdrawn credit balance;
AND WHEREAS the maximum commitment charge is one-half of one per cent (½ of 1%) per annum on the unwithdrawn financing balance;
AND WHEREAS the loan is repayable in 40 years commencing from the date of disbursement of the loan inclusive of a grace period of 10 years;
AND WHEREAS the principal amount of the loan is repayable on each 15th day of May and 15th day of November each year commensurate with the following terms —
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(a) 1% of the loan amount commencing on the 15th day of May, 2032 to and including the 15th day of November, 2041;
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(b) 2% of the loan amount commencing on the 15th day of May, 2042 to and including the 15th day of November, 2061;
BE IT RESOLVED that Parliament authorizes the Minister of Finance to borrow an amount of USD18,000,000.00 from the International Development Association for the implementation of the Unleashing of the Blue Economy of the Caribbean Project;
BE IT FURTHER RESOLVED that —
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(a) the service charge is the greater of —
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(i) the sum of three-fourths of one per cent (3/4 of 1%) per annum plus the Basis Adjustment to the service charge, and
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(ii) three-fourths of one per cent (3/4 of 1%) per annum on the withdrawn credit balance;
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(b) the maximum commitment charge is one-half of one per cent (½ of 1%) per annum on the unwithdrawn financing balance;
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(c) the loan is repayable in 40 years commencing from the date of disbursement of the loan inclusive of a grace period of 10 years;
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(d) the principal amount of the loan is repayable on each 15th day of May and 15th day of November each year commensurate with the following terms —
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(i) 1% of the loan amount commencing on the 15th day of May, 2032 to and including the 15th day of November, 2041,
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(ii) 2% of the loan amount commencing on the 15th day of May, 2042 to and including the 15th day of November, 2061.