Revised Laws of Saint Lucia (2022)

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AND WHEREAS the Maximum Commitment Charge Rate payable on the Un withdrawn Financing Balance is one half of one per cent (1/2 of 1%) per annum;

AND WHEREAS a Service Charge is payable on the Withdrawn Credit Balance that is equal to the greater of —

  1.  

    (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;

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 —

  1.  

    (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

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    (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 —

  1.  

    (a)     the Maximum Commitment Charge Rate payable on the Un withdrawn Financing Balance is one half of one per cent (1/2 of 1%) per annum;

  1.  

    (b)     a Service Charge is payable on the Withdrawn Credit Balance that is equal to the greater of —

    1.  

      (i)     the sum of three-fourths of one per cent (3/4 of 1%) per annum plus the Basis Adjustment, and

    1.  

      (ii)     three-fourths of one per cent (3/4 of 1%) per annum;

  1.  

    (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;

  1.  

    (d)     the principal amount of the loan is repayable on each 15th day of May and 15th day of November at the rate of —

    1.  

      (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

    1.  

      (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.