STATE LOANS AND GUARANTEES ACT

Acts 15/1974, 24/1975, 12/1978, 52/1981, 18/1983, 9/1989, 11/1997, 22/2001 (s. 4); R.G.N. 1135/1975.

ARRANGEMENT OF SECTIONS

PART I

PRELIMINARY Section

1. Short title.

PART II

PROVISIONS RELATINGTO STATELOANS

3. Borrowing powers.
4. Manner of raising State loans.
5. Certain State loans exempt from tax.
6. Proceeds of State loans.
7. Security for State loans and expenses in connection therewith.
8. Repayment of State loans and payment of expenses in connection therewith.

PART III

SINKINGFUNDS

9. Interpretation in Part III.
10. Establishment of sinking funds.
11. Trustees for sinking funds.
12. Payments into sinking funds.
13. Application of moneys in sinking funds.

PART IV

PROVISIONS RELATING TO GUARANTEES BYTHE STATE

14. Interpretation in Part IV.
15. Power to give guarantees.
16. Security for guarantees.
17. Payments in connection with guarantees.
18. Disclosure of information concerning guarantees.

PART V

GENERAL

19. Minister to be exempt from certain obligations.
20. Registrar to make entries necessary to give effect to court orders.
21. Forgery of securities.
22. Powers of Minister.

AN ACT to provide for the raising, administration and repayment of loans by the State and for the giving of guarantees in respect of certain loans; and to provide for matters incidental to or connected with the foregoing.

[Date of commencement: 1st July, 1974.]

PART I

PRELIMINARY

1    Short title

This Act may be cited as the State Loans and Guarantees Act [Chapter 22:13].

                       2    Interpretation

In this Act—

“bond” means a document issued in pursuance of Part II acknowledging a debt and binding the State to pay a specified sum at a stated time or on special conditions, and includes a debenture or other form of certificate of indebtedness;

“financial year” means the period of twelve months ending on the 30th June in any year;

“local authority” means a municipality, town or rural district council;

“Minister” means the Minister of Finance or any other Minister to whom the President may, from time to time, assign the administration of this Act;

“State loan” means a sum of money borrowed in terms of Part II;

“statutory corporation” means a corporate body established directly by an enactment having the force of law in Zimbabwe for special purposes;

“stock” means stock issued in pursuance of Part II;

“Treasury bill” means a Treasury bill issued in pursuance of Part II.

PART II

PROVISIONS RELATING TO STATELOANS

                       3    Borrowing powers

• The President may authorize the Minister to borrow, subject to this Act, a sum of money for any purpose considered by the President to be necessary or expedient.
• The aggregate of the amounts that may be borrowed in terms of subsection (1) in any financial year by way of loans raised within Zimbabwe less any amounts repaid on those loans during that financial year shall not exceed thirty per centum of the general revenues of Zimbabwe in the previous financial year:

Provided that the limit fixed in terms of this subsection may be exceeded in any financial year if the Minister obtains the authority of a resolution of Parliament to do so.

[Subsection amended by Act 11 of 1997]

                       4    Manner of raising State loans

• The Minister may, when so authorized in terms of section three, borrow money upon such conditions as he may fix.
• Without derogation from the generality of subsection (1), the Minister may, in terms of that subsection, borrow by way of—
• the issue of bonds or stock; or
• the issue of Treasury bills; or (c) an advance or bank overdraft.

                       5    Certain State loans exempt from tax

The Minister may fix as a condition of a State loan that the capital and the interest payable thereon shall be exempt, either in whole or in part, from— (a) all taxes, present and future; or

(b) any particular tax; payable in terms of any enactment and, if the Minister does so provide, the capital and the interest payable thereon shall be so exempt.

Provided that the Minister shall not exercise the power conferred by this section in relation to a State loan where the capital is represented by securities that are registered in Zimbabwe unless Parliament has, by resolution, approved the exercise of such power in relation to that particular State loan.