Section 58: Advances to and deposits from Government
consolidated text (as at 2016, amended since). juris shows the text as it was consolidated; it does not confirm that this is the law in force today.
58. Advances to and deposits from Government
(1) Notwithstanding section 6 (1) (a), the Bank may grant advances to
Government to cover negative net cash flows of Government at such rate as
may be agreed with Government.
(2) The total amount of such advances outstanding, together with the
amount of Government securities in the ownership of the Bank, other than
under repurchase agreements and those held under section 6 (1) (j), shall not
at any time exceed 10 per cent of Government’s revenue excluding grants
and receipts of a capital nature for the current financial year.
(3) Any advances under subsection (1) shall be repaid as soon as possible and shall, in any event, be repayable not later than 4 months from the
time the advances are granted.
(4) Where any advances have not been repaid within the time specified
under subsection (3), any advances outstanding shall be converted into Government securities at market rates.
(5) Any Government deposits with the Bank shall be compensated at
such market rates as may be determined by the Bank in accordance with
section 56 (3).
[S. 58 amended by s. 14 (1) of Act 5 of 2008 w.e.f. 1 July 2008.]