45Borrowing from Treasurer

45 Borrowing from Treasurer

(1)  The Treasurer may lend to a Government Business Enterprise, out of money provided by Parliament for the purpose, such money as the Treasurer considers appropriate.

(2)  [Section 45 Subsection (2) amended by No. 42 of 2002, s. 29, Applied:27 Nov 2002] Before making a loan to a Government Business Enterprise, the Treasurer must consult with the Portfolio Minister.

(3)  If a Government Business Enterprise applies for a loan in respect of a loss incurred by it or any of its subsidiaries, in determining whether to make the loan the Treasurer must consider –

(a) the amount of the loss; and

(b) the reasons for the loss; and

(c) the consequences of the loss; and

(d) any other matter the Treasurer considers relevant.

(4)  In determining the consequences of a loss, the Treasurer must consider –

(a) the impact of the loss on the liquidity position of the Government Business Enterprise and all of its subsidiaries; and

(b) the availability of reserves to meet the loss; and

(c) the impact of the loss on the viability of the Government Business Enterprise and all of its subsidiaries.

(5)  A loan is subject to the conditions determined by the Treasurer.

(6)  [Section 45 Subsection (6) amended by No. 4 of 2017, Sched. 1, Applied:01 Jul 2019] An amount lent under subsection (1) and any interest or other charge payable in respect of the loan is a debt repayable into the Public Account by the Government Business Enterprise to which the amount was lent.

(7)  If the Government Business Enterprise to which the amount was lent is unable to repay the debt, the Government Business Enterprise and all its prescribed subsidiaries are jointly and severally liable to repay it.

(8)  For the purposes of subsection (7) , means a subsidiary that is –