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Government Loans (Issue of Bonds) Act

Commencement: 22 June 1987
Repealed

LAWS OF THE REPUBLIC OF VANUATU
REVISED EDITION 1988

CHAPTER 194

GOVERNMENT LOANS (ISSUE OF BONDS) ACT

Act 23 of 1986

ARRANGEMENT OF SECTIONS

SECTION

1. Interpretation
2. Authority to borrow
3. Nature of bonds
4. Government Borrowing and Guarantee Act not to apply to borrowing under this Act
   

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GOVERNMENT LOANS (ISSUE OF BONDS)

An Act to authorise the Government to raise public loans by the issue of bonds, for the purposes of financing the recurrent expenditures of the Government.

INTERPRETATION

1. In this Act -

"bonds" means the bonds authorised to be issued by the Government under this Act;

"Minister" means the minister responsible for finance;

"Revenue Fund" shall have the same meaning assigned to it in the Public Finance Act, Cap. 117.

AUTHORITY TO BORROW

2. (1) Subject to this section, the Government is authorised from time to time to, borrow money and apply such monies to the Revenue Fund for the purpose of financing the recurrent expenditures of the Government, and the repayment of borrowings effected for such purposes.
   

(2) The sums borrowed under this Act shall not exceed VT300,000,000 in any one financial year and shall not exceed in aggregate VT600,000,000 at any one time.

(3) All money borrowed under this Act shall be effected and secured by the issue and sale of bonds. The amount and timing of each issue of bonds, the form and denomination of the bonds, and the terms, and conditions and covenants to be included therein shall be determined by the Minister after consulting the Central Bank of Vanuatu.

NATURE OF BONDS

3. (1) The bonds shall be direct, unconditional and general obligations of Vanuatu and the full faith and credit of Vanuatu shall be unconditionally pledged for the payment of the principal of and the interest on the bonds and any premium, charge, assessment or other expense which may be incurred in connection with the issue or redemption thereof and the performance of all the covenants and obligations of Vanuatu under or with respect to the bonds.
   

(2) The interest on the bonds and any premium, charge, assessment or other expense which may be incurred in connection with the issue or redemption of the bonds shall be charged upon and payable out of the Revenue Fund.

(3) Annual appropriations amounting to not less than one-tenth of the amount of bonds outstanding at the beginning of each year shall be made out of the Revenue Fund and applied to a fund whose purpose is the redemption of the bonds.

GOVERNMENT BORROWING AND GUARANTEE ACT NOT TO APPLY TO BORROWINGS UNDER THIS ACT

4. The provisions of the Government Borrowing and Guarantee Act Cap. 149 shall not apply in relation to borrowings made under this Act.
   

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