Loans to Government

(1) The National Assembly may, subject to subsection (2) of this section, from time to time by resolution authorize the Government to borrow monies or to raise loans and to offer security for such monies or loans, from any public or private 13 bank or financial institution or capital market in or outside Belize, upon such terms and conditions and in an amount not exceeding in the aggregate the sum specified in that behalf in the resolution, to meet current or capital requirements. (2) Any agreement, contract or other instrument effecting any such borrowing or loan to the Government of or above the equivalent of ten million dollars shall only be validly entered into pursuant to a resolution of the National Assembly authorizing the Government to raise the loan or to borrow the Provided that the Government shall not use any money borrowed under this section to meet its “recurrent expenditure” (as defined in the financial regulations made under section 23(4) of this Act, except, (a) to refinance existing public debt; and (b) to amortize and service principal payments to existing public debt, Provided further that, subject to the foregoing the Government may raise loans, borrow monies and secure financing to meet its capital requirements in amounts of less than ten million dollars at any one time without the authority of a resolution as aforementioned on the condition that the total aggregate amount so raised or borrowed in any one fiscal year does not exceed ten million dollars. (3) A resolution referred to in subsection (1) or (2) of this section, shall not have effect for any period exceeding twelve months. (4) The principal and debt charges of all the monies and loans so authorized shall constitute a charge on the 14 (5) Where, by resolution in accordance with this section or in pursuance of this Act, power to borrow money or to raise loans is conferred on the Government, the power maybe exercised by means of a fluctuating overdraft. (6) Before the Government offers any guarantee or some other form of security in support of any loan made directly to a private sector entity or statutory body by any public or private bank, financial institution or capital market in or outside Belize, the Government shall seek the approval of the National Assembly, signified in a resolution made in that behalf, specifying, (a) the terms and conditions under which the Government shall make the guarantee; (b) that the National Assembly is satisfied that the loan will lead to the growth of the economy of Belize, Provided that the National Assembly shall only issue a resolution under this subsection if the National Assembly is satisfied that, (a) the lending institution requires as part of its overall lending policies or in respect of the specific loan, a sovereign guarantee by the Government of Belize; and (b) the private sector entity or the statutory body which will be the recipient of the loan has the financial ability to make payments in respect of the loan, including assets of a value equivalent to the extent of the Government guarantee. (7) Every resolution of the National Assembly referred to in this section shall be published in the Gazette within two weeks of the making thereof. 15 (8) Where the Government borrows money in amounts of less than ten million dollars as provided in the second proviso to subsection (2) of this section, the Government shall, within three months of the borrowing, publish a notice in the Gazette specifying, (a) the date of the loan; (b) the amount of the loan; (c) the parties to the loan; (d) the purpose of the loan; and (e) the terms and conditions of the loan. (9) The Government shall, in a report specifying the details in paragraphs (a) to (e) of subsection (8) of this section , inform the National Assembly of any loan referred to in the second proviso to subsection (2) of this section, within three months of the making of the loan. (10) The House of Representatives shall, before adopting a resolution under this section, refer the resolution to the Finance and Economic Development Committee for consideration and report to the House at its next sitting.