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Development Loans Act 1993

Commencement: 12 July 1993
Repealed

REPUBLIC OF VANUATU

DEVELOPMENT LOANS ACT
NO. 12 OF 1993

Arrangement of Sections

1. Interpretation
2. Minister's power to raise loans
3. Power to issue Instruments including bonds
4. Appropriation and charge of loans
5. Authorization of expenditure
6. Commencement

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REPUBLIC OF VANUATU

DEVELOPMENT LOANS ACT
NO. 12 OF 1993

Assent: 21/06/93
Commencement: 12/07/93

An Act to make provision for the raising of Loans and for matters connected therewith.

BE IT ENACTED by the President and Parliament as follows: -

INTERPRETATION

1. In this Act, unless the context otherwise requires -

"Development Fund" shall have the same meaning assigned to it in the Public Finance Act [CAP. 117];

"Minister" means the Minister responsible for Finance;

"Revenue Fund" shall have the same meaning assigned to it in the Public Finance Act [CAP. 117].

MINISTER'S POWER TO RAISE LOANS

2. (1) Notwithstanding the provisions of any other law but subject to the provisions of this Act, the Minister may, from time to time, in such manner and on such terms and subject to such conditions as may be agreed between the Minister and any bank or financial institution within outside Vanuatu borrow from such bank or financial institution sums not exceeding VT5,000,000,000 over a period not exceeding 5 years for the purpose of development projects approved by the Council of Ministers.
   

(2) Sums borrowed under the powers conferred by subsection (1) shall not exceed VT1,500,000,000 in any one financial year.

(3) Any agreement between the Minister and a bank or financial institution in respect of any sums borrowed under the powers conferred by subsection (1) shall be made in the name of the Government and shall be signed by the Minister.

(4) No money borrowed under this Act shall be used for the financing of the recurrent expenditure of the Government.

POWER TO ISSUE INSTRUMENTS INCLUDING BONDS

3. (1) The Minister may issue such bonds, promissory notes or other instruments on such terms and conditions as may be necessary for the purpose of giving effect to the terms of any agreement which may be entered into by the Minister with a bank or financial institution in respect of any borrowing authorized by this Act.
   

(2) Any bond, promissory note or other instrument issued by the Government under subsection (1) shall be signed on behalf of the Government by the Minister.

(3) The amount and timing of each issue of bonds, promissory notes or other instruments, the form and denomination of the bonds, promissory notes, or other instruments, and the terms and conditions and the covenants to be included therein shall be determined by the Minister after consulting the Reserve Bank of Vanuatu.

APPROPRIATION AND CHARGE OF LOANS

4. (1) Any sums borrowed by the Minister under this Act shall be paid into the Development Fund and shall be applied and appropriated to the purposes of the development project for which they were borrowed as shall be approved by the Council of Ministers and more particularly in any agreement concluded with a bank or financial institution in respect of the sums so borrowed.
   

(2) Where sums borrowed under this Act are not immediately available and expenditure in respect of the development project for which they were borrowed must be met, such expenditure shall be charged as an advance pending re-imbursement and the maximum amount which may be so advanced in any financial year in connection with any project shall not exceed VT500,000,000.

(3) The sums borrowed under this Act and shall interest and other charges thereon are hereby charged upon and shall be payable out of the Revenue Fund over a period not exceeding 20 years from the date on which repayment of the sum so borrowed shall become due as shall be agreed between the bank or financial institution and the Minster.

AUTHORIZATION OF EXPENDITURE

5. (1) The Minister shall authorize by warrant under his hand the issue from the Development Fund of the sums borrowed under this Act which is required during any financial year to meet the expenditure of any development project approved under this Act.
   

(2) The Government shall not be under any duty to meet any financial liability incurred under this Act by any officer or servant of the Government in respect of any development project approved under this Act, unless prior written approval of the Minister has been obtained in respect of such financial liability.

(3) For the avoidance of doubt, the term "officer or servant of the Government" includes Ministers of the Government.

COMMENCEMENT

6. This Act shall come into force on the date of its publication in the Gazette.

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