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Act No. Iii Of 2010 Entitled The Government Borrowing And Granting Of Loans To The Hellenic Republic Act (Act No. Iii Of 2010)

ACT No. III of 2010

AN ACT to authorise and regulate the raising of loans for the purpose of entering into re-lending agreements with the Hellenic Republic.

Short title and commencement.

BE IT ENACTED by the President, by and with the advice and consent of the House of Representatives, in this present Parliament assembled, and by the authority of the same, as follows:-

1. (1) The short title of this Act is the Government

Borrowing and Granting of Loans to the Hellenic Republic Act, 2010.
(2) This Act shall come into force on such a date as the Minister responsible for finance may by notice in the Gazette establish, and different dates may be so established for different provisions or different purposes of this Act.

Interpretation. 2. In this Act, unless the context otherwise requires - "Consolidated Fund" has the same meaning assigned under

article 124 of the Constitution;
"the European Commission" means the Commission of the
European Community;
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"Intercreditor Agreement" includes any agreement entered into between the Euro Area Member States and the European Commission regarding pooled bilateral loans by Euro Area Member States to the Hellenic Republic, which agreement has been laid on the Table of the House of Representatives;
"Loan Facility Agreement" includes any agreement approved by the Euro Area Member States in pursuance of a decision of the Council of the European Union providing for the lending of money to the Hellenic Republic, which agreement has been laid on the Table of the House of Representatives;
"Malta" has the same meaning assigned to it by article 124 of the Constitution of Malta;
"Minister" means the Minister responsible for finance.

3. (1) Subject to the provisions of this Act, the Government of Malta may, for the purposes of article 4, borrow sums of money in Malta, for an amount which in total do not exceed thirty million Euro and such other sums of money as the House of Representatives may from time to time by resolution authorise.

(2) For the purpose of raising the aforesaid sums of money by way of loan, the Minister is hereby authorised to borrow the said sums of money on such terms and subject to such conditions as the said Minister may approve under the provisions of the Local Loans (Registered Stock and Securities) Ordinance, in order to issue stock in Malta:
Provided that the Minister may also when he deems it expedient to do so for reasons of urgency, authorise the temporary use of funds from the Consolidated Fund in order to meet the financing requirements of the Loan Facility Agreement and the Intercreditor Agreement until such time as the proceeds of the borrowing referred to in article 3 shall be obtained.

4. (1) Notwithstanding any other provision of the law, any money borrowed under the authority of this Act shall be appropriated and applied for the purpose of entering into re-lending agreements, concluded between the Government of Malta, as lender, and the Hellenic Republic, as borrower, for an identified amount, in pursuance and within the framework of a Loan Facility Agreement and in pursuance of an Intercreditor Agreement.

(2) The re-lending of money borrowed in terms of this Act for any purpose other than the purpose specified under sub-article (1) may only be done in such manner and for such purpose as the House

Authority to raise loan.

Cap. 161.

Purpose of loans.

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of Representatives may by resolution determine.
Passed by the House of Representatives at Sitting No. 219 of the
11th May, 2010.
MICHAEL FRENDO

Speaker

RAYMOND SCICLUNA

Acting Clerk to the House of Representatives