Section 8: Guarantees by 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.
8. Guarantees by Government
(1) (a) Subject to this section, the Minister may execute, in the name
and on behalf of Government, any instrument required to be executed for the
purpose of guaranteeing, wholly or partly, the repayment of any money borrowed by the regional government, local government or any public enterprise
for any purpose except current expenditure.
(b) The Minister may authorise, in writing, an officer of the Ministry
to execute, in the name and on behalf of Government, any instrument
referred to in paragraph (a).
P47A – 7 [Issue 9]
Public Debt Management Act
(2) Prior to the execution of any instrument under subsection (1), the
Minister—
(a) shall take into consideration the public sector debt ceiling referred
to in section 7 which, by combining the general government debt
and the other public sector debt, may effectively limit the amount
of guarantees to be given in a fiscal year; and
(b) may require—
(i) the Rodrigues Regional Assembly, a local government or a
public enterprise, as the case may be, to furnish proof of
its capacity to repay the money borrowed; and
(ii) a risk assessment exercise to be carried out to determine
the level of risk involved with regard to the issue of the
guarantee.
(3) The Minister may—
(a) as a condition of the guarantee, require a public enterprise to
pay an annual fee not exceeding one per cent of the amount
guaranteed; and
(b) for the purposes of guaranteeing any money under this section,
impose such other conditions in such manner and on such terms
as he may determine.
(4) Any money, the repayment of which is guaranteed under any instrument under subsection (1), shall be a charge on the Consolidated Fund and
any liability incurred under it shall be paid out of the Fund.
(5) The Ministry shall maintain the official register of the stock of Government-guaranteed debt.
(6) The Ministry shall, not later than one month after the end of every
quarter, prepare a report on the stock of Government-guaranteed debt and
the costs incurred and the estimated costs to be incurred due to realisation
of Government guarantees, and takes steps to ensure that it is made public.
[S. 8 amended by s. 22 of Act 26 of 2012 w.e.f. 22 December 2012; s. 40 (d) of Act 18 of
2016 w.e.f. 7 September 2016.]