RESOLUTION OF PARLIAMENT TO BORROW FOR CAPITAL AND CURRENT EXPENDITURE TO FINANCE SAFETY NETS FOR VULNERABLE POPULATIONS AFFECTED BY COVID-19 – SECTION 63(1)
Commencement [5 December 2022]
RESOLUTION
WHEREAS it is provided by section 63(1) 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 USD5,217,000.00 from the Special Funds Resources of the Caribbean Development Bank (the Bank) to finance safety nets for vulnerable populations affected by COVID-19;
AND WHEREAS the loan is repayable in 80 equal or approximately equal and consecutive quarterly instalments;
AND WHEREAS the loan payments commence 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 3 years following the date of the loan, or such later date as the Bank specifies in writing;
AND WHEREAS interest is payable at a rate of four point three nine per cent (4.39%) per annum on the amount of the principal disbursed and outstanding and the borrower may request an Interest Rate Conversion from the Bank;
BE IT RESOLVED that Parliament authorizes the Minister of Finance to borrow USD5,217,000.00 from the Special Funds Resources of the Bank to finance safety nets for vulnerable populations affected by COVID-19;
BE IT FURTHER RESOLVED that —
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(a) the loan is repayable in 80 equal or approximately equal and quarterly instalments;
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(b) loan payments commence 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 3 years following the date of the loan, or such later date as the Bank specifies in writing;
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(c) interest is payable at a rate of four point three nine per cent (4.39%) per annum on the amount of the principal disbursed and outstanding and the borrower may request an Interest Rate Conversion from the Bank.