RESOLUTION OF PARLIAMENT TO BORROW FOR CAPITAL OR CURRENT EXPENDITURE TO FINANCE THE IMPLEMENTATION OF NATIONAL DEVELOPMENT PROJECTS, INITIATIVES AND COVID-19 MITIGATION MEASURES – 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 an amount of USD10,000,000.00 from the Export-Import Bank of the Republic of China to finance the implementation of national development projects and initiatives;
AND WHEREAS the loan is repayable in thirty 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 thereafter, on the last day of each successive 6 month period;
AND WHEREAS if the full amount of the loan has been drawn down, each principal instalment must be in the amount of USD333,334.00, except that the last principal instalment must be in the amount of USD333,314.00, otherwise the amount of each instalment shall be adjusted by the Export-Import Bank of the Republic of China;
AND WHEREAS interest is payable at a rate of the 6 month Secured Overnight Financing Rate plus 0.20% plus 0.5% per annum;
AND WHEREAS the loan is repayable in 20 commencing from the date of first disbursement of the loan inclusive of a grace period of 5 years;
BE IT RESOLVED that Parliament authorizes the Minister of Finance to borrow the amount of USD10,000,000.00 from the Export-Import Bank of the Republic of China to finance the implementation of national development projects and initiatives;
BE IT FURTHER RESOLVED that —
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(a) the loan is repayable in thirty 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 thereafter, on the last day of each successive 6 month period;
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(b) if the full amount of the loan has been drawn down, each principal instalment must be in the amount of USD333,334.00, except that the last principal instalment must be in the amount of USD333,314.00, otherwise the amount of each instalment shall be adjusted 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 Secured Overnight Financing Rate plus 0.20% plus 1.5% per annum;
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(d) 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.