RESOLUTION OF PARLIAMENT TO BORROW FOR CAPITAL OR CURRENT EXPENDITURE – COVID-19 RESPONSE, RECOVERY AND RESILIENCE DEVELOPMENT POLICY PROGRAMME – SECTION 63(1)(A)
Commencement [26 February 2021]
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 USD30,000,000.00 from the International Development Association to finance the COVID-19 Response, Recovery and Resilience Development Policy Programme;
AND WHEREAS the Maximum Commitment Charge Rate payable on the Un withdrawn Financing Balance is one half of one per cent (1/2 of 1%) per annum;
AND WHEREAS a Service Charge is payable on the Withdrawn Credit Balance that is equal to the greater of —
-
(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
-
(b) three-fourths of one per cent (3/4 of 1%) per annum;
AND WHEREAS the loan is repayable in 40 years commencing from the date of first 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 at a rate of —
-
(a) one per cent (1%) of the loan amount, commencing from the 15th day of May, 2031 to, and including, the 15th day of November, 2040; and
-
(b) two per cent (2%) of the loan amount, commencing from the 15th day of May, 2041 to, and including, the 15th day of May, 2060;
BE IT RESOLVED that Parliament authorizes the Minister of Finance to borrow an amount of USD30,000,000.00 from the International Development Association to finance the COVID-19 Response, Recovery and Resilience Development Policy Programme;
BE IT FURTHER RESOLVED that —
-
(a) the Maximum Commitment Charge Rate payable on the Un withdrawn Financing Balance is one half of one per cent (1/2 of 1%) per annum;
-
(b) a Service Charge is payable on the Withdrawn Credit Balance that is equal to the greater of —
-
(i) the sum of three-fourths of one per cent (3/4 of 1%) per annum plus the Basis Adjustment, and
-
(ii) three-fourths of one per cent (3/4 of 1%) per annum;
-
(c) the loan is repayable in 40 years from the date of first disbursement of the loan inclusive of a grace period of 10 years;
-
(d) the principal amount of the loan is repayable on each 15th day of May and 15th day of November at the rate of —
-
(i) one per cent (1%) of the loan amount, commencing from the 15th day of May, 2031 to, and including, the 15th day of November, 2040, and
-
(ii) two per cent (2%) of the loan amount, commencing from the 15th day of May, 2041 to, and including, the 15th day of November, 2060.