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Seychelles
Public Debt Management Act
Act 32 of 2008
- Commenced on 29 December 2008
- [This is the version of this document as it was at 30 June 2012 to 27 November 2022.]
Part I – Preliminary
1. Short title
This Act may be cited as the Public Debt Management Act.2. Interpretation
In this Act—“advance” means a loan to the Government from the Central Bank payable within a period of less than one year in accordance with section 40 of the Central Bank of Seychelles Act, 2004;“bill” means a zero-coupon debt instrument with a maturity period of twelve months or less;“bond” means an interest-bearing debt instrument with a maturity period of more than one year;“book entry system” means a computerized system established or otherwise authorized by the Minister, to register, for the account of holders, the issuance, account status, servicing and redemption of Government securities;“borrowing plan” means a schedule of anticipated Debt contraction over the forthcoming fiscal year indicating the size, type and repayment terms of the anticipated debt;“Central Bank” means the Central Bank of Seychelles established by the Central Bank of Seychelles Act, 2004;“debt and budget execution report” means reports that detail the national debt and guarantees ledger, the level of public debt and the position of the guarantee issued by the Government and the performance to date of the existing debt strategy, as well as a report on the use of funds appropriated for debt service;“debt management” means the policy and operational functions relating to raising of debt, issuing of guarantees, discharging of obligations and issues emanating therefrom, and other measures intended to achieve the objectives of the debt strategy;“Debt Strategy” means a strategy that specifies desired characteristics of public debt and the tools required to achieve such characteristics;“foreign debt” means any loan or debt security raised or issued by the Government or a parastatal organization from outside the Republic;”;“force majeure” means a natural disaster, emergency, or major economic slow-down requiring policies that lead to exceeding a previously established limit on the Public Debt in relation to the gross domestic product;“gross domestic product” means the sum of value added of goods and services produced within the Republic;“guarantee” means the potential liability assumed by the Republic that is contingent on the financial obligation of another legal person and becomes public debt when the party responsible for the payment of the financial obligation fails to make payment when due;“local debt” means any loan or debt security raised, issued or sold by the Government or a parastatal organisation within the Republic;“Minister” means the minister responsible for financial matters; sand“Ministry” is construed accordingly;“National Committee” means the National Debt Management Committee established under section 17;“parastatal organisation” means a statutory corporation or body or limited liability company which is directly or ultimately under the control of the Government or of any other body which is carrying out a governmental function;“public debt” means any debt incurred in or outside Seychelles through the raising of loans, the issuing or sale securities, overdrafts or any other means, by the Government and includes advances from the Central Bank to the Government;“security” means any debt instrument issued under the authority of the Minister as evidence of a local or foreign debt raised under this Act and includes bonds, and bills issued under section 9;“service cost” in respect of any financial year, in relation to any Debt means the aggregate of the payment required to be made in respect of the debt during the financial year, where such payment is of interest or is towards the repayment of the debt.“suppliers credit” means financing advanced to the buyer by the supply of goods or services;“Technical Committee” means the Technical Debt Management Committee established under section 23;3. Administration of Act
Part II – Debts
Foreign debt
4. Authority to raise foreign debt
5. Payment due in respect of foreign asset
Where the Government with the approval of the Minister acquires any asset under an agreement which provides for payment for such asset to be made outside the Republic subsequent to the date of the acquisition of the asset, the sum of money payable under such agreement shall, for the purposes of this section, be deemed to be debt raised by the Minister outside the Republic.6. Moneys borrowed to be paid into Consolidated Fund
7. Power of Minister to repay, convert and consolidate loans or debt security
Local debt
8. Authority to raise local debt
9. Local loans may be raised by issue of bills, bonds or stock
10. Conditions for issue of securities
Where a local debt is raised under section 8 of this Act—11. Exemption from stamp duty
No stamp duty shall be payable on trading and transferring Government Debt Securities.12. Other conditions for issue of securities
The Minister may, at the time of issue of any bills, bonds or stock, impose conditions, not inconsistent with this Act, or any other written law governing the securities market as to any of the following matters−13. Interest subject to withholding tax
Any interest on bills, bonds and stock shall be deemed to be interest for the purposes of the Business Tax Act, and the provisions of that Act relating to withholding tax shall apply to such interest unless exempted by any order made under that Act.13A.
Part III – Guarantees
14. Authority to guarantee loans
15. Body benefiting from guarantee to reimburse Government all disbursements
Part IV – Grants
16. Authority to receive grants
Part V – Debt Management Committees
17. Establishment of National Debt Management Committee
There is established the National Debt Management Committee.18. Functions of National Committee
The functions of the National Committee are to—19. Composition of National Committee
The National Committee consists of—20. Meetings of National Committee
21. Proceedings of National Committee
The National Committee regulates its own proceedings.22. Secretariat of National Committee
23. Establishment of Technical Debt Management Committee
24. Sub-committees
Where the need arises and it is in the interest of sustainable public debt management, the National Committee may form other sub-committees to consider and report to the National Committee on any matter referred to it by that Committee.Part VI – Miscellaneous
25. Amounts due on loan or under guarantee to be charge on Consolidated Fund
Any sum of money due from the Government—26. Obligation of Government to pay debt
Any debt incurred in or outside Seychelles by the Government or a parastatal organisation, and which is wholly or partly guaranteed by the Government shall constitute a debt due by the Republic and shall carry an absolute and unconditional commitment by the Government to the timely payment of the principal of the debt, and the interest on it, in accordance with the terms and conditions under which the debt was contracted.27. Status of claims in respect of Government debt
28. Loans and guarantees to be published
An agreement for a debt raised or guarantee given under this Act shall not have effect until there is published in the Gazette, an Order, made by the Minister, giving particulars of—29. Responsibility of Minister with regards to plans and reports
30. Minister to specify certain particulars in annual estimates
The Minister shall, in the annual estimates of the public revenue and expenditure submitted to the National Assembly under section 29(1)(a), specify the amount required to meet the service cost on all outstanding debt whether by repayment of principal or payment of interest or other charges incurred on the debt during the financial year to which such estimates relate, and the amount expected to be raised from debt grants during that year.31. Authority of Minister to be exercised in accordance with National Debt Strategy
The authority conferred upon the Minister by sections 4 and 8 shall be exercised in line with the debt management objectives of the Debt Strategy.32. Power of Minister to make regulations
The Minister may make regulations for the better carrying into effect of the purposes and provisions of this Act and without prejudice to the generality of the foregoing, may provide for—33. This Act to prevail in case of conflict with other law
Where there is conflict between this Act and any other written law in matters relating to raising of debt, receiving of grants and issuing of guarantees, the provisions of this Act shall prevail.34. Repeals
The Local Loans Act, the Loans Decree and the Treasury Bills Decree are repealed.35. Savings and transitional provision
Notwithstanding section 34—History of this document
23 December 2022 amendment not yet applied
28 November 2022 amendment not yet applied
30 June 2012 this version
Consolidation
29 December 2008
Commenced