Commencement: 20 February 1989

REPUBLIC OF VANUATU

THE GUARANTEE OF LOANS (AIR VANUATU) ACT
No. 1 OF 1989

Arrangement of Sections

1. Definition.
2. Minister's authority to provide guarantee in respect of loan of $AUS10 million from various participating banks (to be procured by Jardine Fleming (Australia) Capital Limited) to Air Vanuatu (Operations) Limited.
3. Act No. 20 of 1982 not to apply.
4. Commencement.

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REPUBLIC OF VANUATU

THE GUARANTEE OF LOANS (AIR VANUATU) ACT
No. 1 OF 1989

Assent: 10/2/89
Commencement: 20/2/89

An Act to empower and authorise the Minister responsible for Finance to negotiate and sign a Guarantee Agreement on behalf of the Republic of Vanuatu so as to enable Air Vanuatu to borrow an amount not exceeding $AUS10 million from various participating banks to be procured by Air Vanuatu's merchant bankers Jardine Fleming (Australia) Capital Limited for the purchase of an aircraft.

WHEREAS -

1. Air Vanuatu is desirous of obtaining a loan of $AUS10 million to enable it to purchase an aircraft and has engaged its merchant bankers Jardine Fleming (Australia) Capital Limited to procure such a loan from various participating banks;

2. The Government is desirous of assisting Air Vanuatu in obtaining such loan and in ensuring that Air Vanuatu meets all the commitments arising out of such loan;

3. It is an essential condition of the making of such loan that it be made subject to an irrevocable Government Guarantee given by the Government to the participating banks;

4. The Government is desirous of providing such guarantee for the loan on such terms and conditions as may be agreed between Air Vanuatu (subject to the approval of the Minister of Finance) and the participating banks;

NOW THEREFORE BE IT ENACTED by the President and Parliament as follows:-

DEFINITION

1. In this Act -

"$AUS" means Australian dollars;

"Air Vanuatu" means the Air Vanuatu (Operations) Limited of Port Vila, Vanuatu;

"Minister" means the Minister responsible for Finance;

"participating banks" means such bank or banks as are procured by Air Vanuatu's merchant bankers Jardine Fleming (Australia) Capital Limited to make the loan and shall include a syndicate of participating banks if necessary.

MINISTER'S AUTHORITY TO PROVIDE GUARANTEE IN RESPECT OF LOAN OF $AUS10 MILLION FROM PARTICIPATING BANKS TO AIR VANUATU

2. The Minister is hereby authorised on behalf of the Government to provide a guarantee to the participating banks for the purposes of enabling Air Vanuatu to borrow a sum not exceeding $AUS10 million from the participating banks on such terms and conditions as may be agreed between the Government and the participating banks and subject to the previous approval of the Council of Ministers.

ACT No. 20 OF 1982 NOT TO APPLY

3. The provisions of the Government Borrowing and Guarantee Act No. 20 of 1982 shall not apply to any moneys guaranteed or applied in pursuance of the provisions of this Act.

COMMENCEMENT

4. This Act shall come into force on the day of its publication in the Gazette.

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