RESOLUTION OF PARLIAMENT TO BORROW FOR CAPITAL OR CURRENT EXPENDITURE – OPERATING EXPENSES IN THE HEALTH SECTOR RELATED TO THE COVID-19 VIRUS PANDEMIC – 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 from the European Investment Bank the sum of EUR 13,500,000.00 to finance emergency operating expenses in the health sector related to the COVID-19 Virus Pandemic;
AND WHEREAS the loan is repayable over a period of 20 years from the date of first disbursement of the loan inclusive of a 4 year grace period;
AND WHEREAS the loan payments shall be made in consecutive equal semi-annual instalments;
AND WHEREAS the loan payments shall commence after the grace period of 4 years expires;
AND WHEREAS the interest is payable —
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(a) at a fixed rate of 1.35% to 1.45% to be determined by the European Investment Bank at the time of disbursement for each Tranche;
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(b) at a floating rate of 3 months Euro Inter-Bank Offered Rate plus 110 basis points to 120 basis points per annum;
BE IT RESOLVED that Parliament authorizes the Minister of Finance to borrow from the European Investment Bank the sum of EUR 13,500,000.00 to finance emergency operating expenses in the health sector related to the COVID-19 Virus Pandemic;
BE IT FURTHER RESOLVED that —
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(a) the loan is repayable over a period of 20 years from the date of first disbursement of the loan inclusive of a 4 year grace period;
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(b) the loan payments shall be made in consecutive equal semi-annual instalments;
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(c) the loan payments shall commence after the grace period of 4 years expires;
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(d) the interest is payable —
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(i) at a fixed rate of 1.35% to 1.45% to be determined by the European Investment Bank at the time of disbursement for each Tranche;
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(ii) at a floating rate of 3 months Euro Inter-Bank Offered Rate plus 110 basis points to 120 basis points per annum.