Public Finance (Borrowing Powers) Act 2008

Link to law: http://www.gibraltarlaws.gov.gi/articles/2008-13o.pdf
Published: 2008-07-24

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I ASSENT Public Finance (Borrowing Powers)
© Government of Gibraltar (www.gibraltarlaws.gov.gi)
2008-13


PUBLIC FINANCE (BORROWING POWERS) ACT 2008

Principal Act

Act. No. 2008-13 Commencement (LN. 2008/054) 24.7.2008
Assent 23.7.2008




Amending
enactments
Relevant current
provisions
Commencement
date

Act. 2009-14 ss. 2, 3(1), (1)(i), (2)(v) & (4), 11, 12 26.3.2009
2016-06 ss. 2, 3(1)(i) 10.3.2016


English sources:
None cited

EU Legislation/International Agreements involved:



Public Finance (Borrowing Powers)
© Government of Gibraltar (www.gibraltarlaws.gov.gi)
2008-13
ARRANGEMENT OF SECTIONS

Section.

1. Title and commencement.
2. Interpretation.
3. Power to borrow.
4. Amount of debentures.
5. Registration of debentures.
6. Transfers of debentures.
7. Interest on debentures.
8. Payment of interest on debentures.
9. Redemption of debentures.
10. Cancellation of debentures.
11. Loan agreements and interest rate swap agreements.
12. Loan agreements and interest rate swap agreements to be tabled.
13. Application of money borrowed.
14. Sinking funds.
15. Securities.
16. Validity of agreements and securities.
17. Interest and repayments to be charged on Consolidated Fund.
18. Regulations.
19. Saving.
20. Repeal.
Public Finance (Borrowing Powers)
© Government of Gibraltar (www.gibraltarlaws.gov.gi)
2008-13
AN ACT TO PROVIDE FOR THE RAISING OF LOANS BY THE
GOVERNMENT OF GIBRALTAR FOR VARIOUS PURPOSES AND
FOR MATTERS RELATING THERETO.

Title and commencement.

1.(1) This Act may be cited as the Public Finance (Borrowing Powers) Act
2008.

(2) This Act comes into operation on the day appointed by the
Government and different days may be appointed for different provisions
and for different purposes.

Interpretation.

2. In this Act, except in so far as the context otherwise requires–

“Minister” means the Minister with responsibility for Public Finance;

“Public Debt” means the principal sum of any debt arising from any
borrowing of money by the Government the repayment of which
the Government or the revenues of Gibraltar or the Consolidated
Fund are liable under any law or under any agreement regulating or
relating to such borrowing;

“Cash Reserves” means the total amount of cash held by the Government
in the Consolidated Fund and the Improvement and Development
Fund;

“Aggregate Public Debt” means the total amount of Public Debt owing
by the Government less any amount held in any sinking fund
established by the Financial Secretary to provide for the repayment
of such Public Debt;

“Net Public Debt” means the Aggregate Public Debt less the Cash
Reserves;

“Gross Domestic Product” means the latest annual figure of Gibraltar’s
Gross Domestic Product published by the Statistics Office of the
Government of Gibraltar;

“Consolidated Fund Recurrent Annual Revenue” means the annual
Recurrent Revenue of the Consolidated Fund for the financial year
ended on 31st March last;

“Annual Debt Service Ratio” means the ratio of debt interest payments,
over a full period of twelve months at interest rates applicable to
Public Finance (Borrowing Powers)
© Government of Gibraltar (www.gibraltarlaws.gov.gi)
2008-13
Public Debt at that time, to the Consolidated Fund Recurrent
Annual Revenue.

Power to borrow.

3.(1) Subject to the provisions of this Act, the Government may, with the
prior approval of the Minister, from time to time, in addition to any other
sums of money that it is for the time being authorised to borrow under any
law, borrow any sum or sums of money provided that the Government shall
not draw down or incur any additional Public Debt nor without the leave of
the House by Resolution draw on the Cash Reserves in manner that will
cause–

(i) the Net Public Debt after such borrowing or drawing to exceed
the higher of £300,000,000 or forty per cent of Gibraltar’s
Gross Domestic Product; or

(ii) the Annual Debt Service Ratio to exceed 8%

(2) For the purposes of any person (including but without prejudice to the
generality of the foregoing the lender of any Public Debt), a Certificate of
the Financial Secretary shall be conclusive as to the level or extent at any
time, or in respect of any specific period of time, of any of the following–

(i) Aggregate Public Debt

(ii) Gross Domestic Product;

(iii) Consolidated Fund Recurrent Annual Revenue;

(iv) Annual Debt Service Ratio;

(v) Net Public Debt.

(3) Any sum of money to be borrowed by the Government under this Act
may be borrowed in any one or more of the following ways, namely–

(a) by the issue of registered debentures on subscription by the
public or by any section of the public, or person; or

(b) from any one or more other persons, on such terms as may be
agreed between the Government and that person or persons.

(4) For the purpose of managing debt interest payments, the Government
may from time to time, with the prior approval of the Minister, enter into
interest rate swap agreements provided that the total notional principal sum
under such swap agreements does not exceed the Aggregate Public Debt.
Public Finance (Borrowing Powers)
© Government of Gibraltar (www.gibraltarlaws.gov.gi)
2008-13

Amount of debentures.

4. Every debenture issued under this Act shall be a sum of £100 or any
multiple thereof.

Registration of debentures.

5.(1) The Financial Secretary shall cause every debenture issued under this
Act to be registered in a register to be kept for that purpose.

(2) The Financial Secretary shall cause a certificate of registration, in the
prescribed form (if any) to be issued to the registered owner of every
debenture issued under this Act.

Transfers of debentures.

6.(1) Every debenture issued under this Act shall be transferable by entry in
the register.

(2) Every transfer shall be made in such manner and subject to such
conditions, if any, as may be prescribed.

Interest on debentures.

7. All money that is raised on the issue of a debenture under this Act shall
bear interest at such rate as may be specified in the prospectus inviting
subscriptions for that debenture or otherwise specified in the instrument
creating that debenture.

Payment of interest on debentures.

8. The interest on the principal money represented by each debenture issued
under this Act shall run from the day named for the purpose in the debenture
and shall be paid half-yearly, at the office of the Financial Secretary, on such
dates as may be specified in the prospectus inviting subscriptions for that
debenture or in respect of such other periods and on such other dates as may
by specified in the instruments creating that debenture.

Redemption of debentures.

9.(1) Every debenture issued under this Act shall be redeemable at par on
such date as may be specified in the prospectus inviting subscriptions for
that debenture or on such date or dates as may be specified in the instrument
creating the debenture.

Public Finance (Borrowing Powers)
© Government of Gibraltar (www.gibraltarlaws.gov.gi)
2008-13
(2) From and after the date of redemption of any debenture issued under
this Act all interest on the principal moneys represented by the debenture
shall cease and determine, whether payment of the principal moneys shall
have been demanded or not.

(3) Notwithstanding subsection (1), the Government may, at its option,
redeem at par any debenture issued under this Act at any time before the
date of redemption on giving not less than six months' notice of its intention
so to do.

(4) Notwithstanding subsection (3) the Government may, in respect of a
specific debenture or specific debentures exclude its right under that
subsection.

(5) The Government may at any time–

(a) redeem any debenture issued under this Act by purchase in the
market; and

(b) transfer any such debenture to any other person, at a price not
less than that for which it purchased it and any debenture so
transferred by the Government shall be subject to all the
provisions of this Act relating to debentures.

Cancellation of debentures.

10. On–

(a) the repayment of the principal moneys represented by a
debenture issued under this Act; or

(b) the redemption of a debenture issued under this Act the
debenture shall be delivered to the Financial Secretary who
shall cancel and retain it for a period of five years.

Loan agreements and interest rate swap agreements.

11. Every agreement referred to in sections 3(3)(b) and 3(4) shall be made
in writing, in the name of the Government, and shall be signed on behalf of
the Government by the Financial Secretary or by any person authorised in
writing by the Minister for the purpose.

Loan agreements and interest rate swap agreements to be tabled.

12. Every agreement specified in section 11 shall be laid on the table of the
Parliament at the next meeting of the Parliament commencing after the date
on which the agreement is made.
Public Finance (Borrowing Powers)
© Government of Gibraltar (www.gibraltarlaws.gov.gi)
2008-13

Application of money borrowed.

13. All sums of money borrowed by the Government under this Act shall be
applied and appropriated at the discretion of the Minister without further
authority than this section, to–

(a) the Consolidated Fund; or

(b) the Improvement and Development Fund for development
purposes; or

(c) the repayment of any other Public Debt.

Sinking funds.

14.(1) The Financial Secretary may establish one or more sinking funds to
provide for the repayment of any money borrowed under this Act, and for
the payment of all interest and other charges payable on money so borrowed.

(2) Every fund so established shall be a special fund within the meaning of
section 18 of the Public Finance (Control and Audit) Act.

(3) The Financial Secretary may from time to time transfer from the
Consolidated Fund into any sinking fund established under this section, such
amounts as he may think fit.

Securities.

15.(1) The Government may issue, in addition to debentures, any bonds,
stock, promissory notes or other securities for the repayment of any money
borrowed under this Act, on such terms and conditions (not being
inconsistent with the terms on which the money has been borrowed) as it
may determine.

(2) Any security issued under subsection (1) shall be issued in writing in
the name of the Government of Gibraltar and shall be signed on behalf of
the Government by the Financial Secretary or by any person authorised in
writing by the Minister for the purpose.

(3) All debentures and other securities issued under this Act, and all
instruments of transfer or sale relating to such debentures and other
securities, shall be exempt from stamp duty.

Validity of agreements and securities.

Public Finance (Borrowing Powers)
© Government of Gibraltar (www.gibraltarlaws.gov.gi)
2008-13
16.(1) Notwithstanding anything contained in any other law, every
agreement specified in section 11, and every debenture and other security
issued under this Act, shall be valid and enforceable and shall have full
force and effect according to their tenor.

(2) The provisions of this Act shall not affect or prejudice the
recoverability by the lender of any moneys borrowed by the Government,
nor the ability of the Government to pay interest thereon.

Interest and repayments to be charged on Consolidated Fund.

17. All money borrowed under this Act, and all interest and other charges
payable on money so borrowed pursuant to every debenture and to every
agreement specified in section 11, and all money, interest and other charges
payable under any other security issued under this Act, shall be charged
upon and shall be payable out of the Consolidated Fund, without further
appropriation than under this section.

Regulations.

18.(1) The Minister responsible for finance may from time to time make
regulations for all or any of the following purposes–

(a) prescribing the form of debentures and other securities issued
by the Government under this Act, and the manner in which
they shall be issued;

(b) providing for registers of securities issued under this Act and
for the transfer of such securities;

(c) providing for the exemption wholly or partly of any debenture,
agreement or security made or issued under this Act or of any
income derived by any person under any such debenture,
agreement or security, from any tax, duty, charge or fee payable
by law in respect of any such debenture, agreement, security or
income;

(d) for such other matters as are reasonably necessary for or
incidental to the due administration of this Act.

(2) Regulations made under this Act may make different provision for
different classes of security.

Saving.

19. Nothing in this Act shall be construed as derogating from any other
lawful power of the Government to borrow money or to issue securities.
Public Finance (Borrowing Powers)
© Government of Gibraltar (www.gibraltarlaws.gov.gi)
2008-13

Repeal.

20. The Borrowing Powers Act, 1988 is repealed.