RESOLUTION OF PARLIAMENT TO BORROW FOR CAPITAL OR CURRENT EXPENDITURE TO PROVIDE BUDGETARY SUPPORT FOR THE FISCAL YEAR 2022/2023 – SECTION 63(1)(a)
Commencement [9 December 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 USD102,128,294.00 from the Export-Import Bank of the Republic of China to provide Budgetary support for the fiscal year 2022/2023;
AND WHEREAS the loan is repayable in 20 years commencing from the date of first disbursement of the loan inclusive of a grace period of 5 years;
AND WHEREAS the loan is repayable in 30 consecutive equal or as nearly equal as possible semi-annual instalments, the first of which must be made on the last day of the 66th month from the date the first advance under the loan is made by the Export-Import Bank of the Republic of China;
AND WHEREAS interest is payable at a rate of the 6 month Chicago Mercantile Exchange Term Secured Overnight Financing Rate plus 0.2% and 1.25% per annum;
AND WHEREAS if the full amount of the loan has been drawn down, each principal instalment must be in the amount of USD3,404,277.00, except that the last principal instalment must be in the amount of USD3,404,261.00;
BE IT RESOLVED that Parliament authorizes the Minister of Finance to borrow the amount of USD102,128,294.00 from the Export-Import Bank of the Republic of China to provide Budgetary support for the fiscal year 2022/2023;
BE IT FURTHER RESOLVED that —
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(a) the loan is repayable in 20 years commencing from the date of first disbursement of the loan inclusive of a grace period of 5 years;
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(b) the loan is repayable in 30 consecutive equal or as nearly equal as possible semi-annual instalments, the first of which must be made on the last day of the 66th month from the date the first advance under the loan is made by the Export-Import Bank of the Republic of China;
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(c) interest is payable at a rate of the 6 month Chicago Mercantile Exchange Term Secured Overnight Financing Rate plus 0.2% and 1.25% per annum;
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(d) if the full amount of the loan has been drawn down, each principal instalment must be in the amount of USD3,404,277.00, except that the last principal instalment must be in the amount of USD3,404,261.00.