Commencement: 30 December 1985
Repealed

LAWS OF THE REPUBLIC OF VANUATU
REVISED EDITION 1988

CHAPTER 184

ECONOMIC & SOCIAL DEVELOPMENT LOANS
(ISSUE OF BONDS) ACT

Act 24 of 1985

ARRANGEMENT OF SECTIONS

SECTION
1.	Interpretation
2.	Authority to borrow for economic and social development
3.	Nature of bonds
4.	Loan to statutory bodies
5.	Government Borrowing and Guarantee Act not to apply to borrowings under this Act

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ECONOMIC & SOCIAL DEVELOPMENT LOANS (ISSUE OF BONDS)

To authorise the Government to raise public loans by the issue of bonds for the purposes of financing economic and social development in Vanuatu.

INTERPRETATION

1.	In this Act -

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

"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;

AUTHORITY TO BORROW FOR ECONOMIC AND SOCIAL DEVELOPMENT

2.	(1)	Subject to this section, the Government is authorised from time to time to borrow money from within Vanuatu and apply such monies to the Development Fund for the purpose of financing out of the Development Fund general economic and social development in Vanuatu and the repayment of borrowings effected for such development.

(2)	The sums borrowed under this Act shall not exceed VT150,000,000 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.

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

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 arid 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 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 the Development Fund for the redemption of the bonds.

LOAN TO STATUTORY BODIES

4.	(1)	The Minister may from the money borrowed under this Act, make loans to any public statutory body, a municipality or a local government council for the purposes of financing general development projects, if he considers such projects to be in the public interest.

(2)	Subject to subsection (3) a loan made under this section shall be subject to such terms and conditions as the Minister may determine.

(3)	It shall be a condition of all loans made under this section that the money advanced shall be applied for the funding of a project approved by the Minister and shall not be applied for funding any other project, or otherwise.

(4)	Loan repayments made by such bodies as are referred to in subsection (1) shall be appropriated to the Development Fund and shall be held available for the redemption of the bonds issued under this Act.

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

5.	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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