ACT No. XIV of 2010 AN ACT to authorize and regularize the participation within the European Financial Stability Facility and to issue guarantees for the payment of the financial instruments or agreement issued or entered into by the European Financial Stability Facility.

I assent.

G EORGE A BELA

(L.S.)

President

20th July, 2010

ACT No. XIV of 2010

AN ACT to authorize and regularize the participation within the

European Financial Stability Facility and to issue guarantees for

the payment of the financial instruments or agreement issued or

entered into by the European Financial Stability Facility.

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) The short title of this Act is the Participation and

Guarantees under the European Financial Stability Facility Act, 2010.

(2) This Act shall come into force on such 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.

In this Act, unless the context otherwise requires:-

Interpretation.

"the European Financial Stability Facility" means a

corporate structure in the form of a public limited liability

company known as a societe’ anonyme, incorporated in

Luxembourg, with its registered office in Luxembourg-City and

bearing registration number R.C.S. Luxemburg B153.414;

"the European Financial Stability Facility Framework

Agreement" means the agreement entered into between the Euro

Area Member States and the European Financial Stability

Facility regarding the terms and conditions upon which the

European Financial Stability Facility may make loans to Euro

Area Member States who are in financial difficulties, finance

such loans backed up by guarantees issued by the other Euro

Area Member States, and other matters regulated therein, 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;

"Member States" means the Euro Area Member States of

the European Union.

(1) Subject to the provisions of this Act, the Authority to

Government of Malta may participate in the European Financial participate

the European

Stability Facility as a shareholder in the subscribed share capital and Financial

Stability

authorized share capital, and as a director on the board of directors, in Facility.

accordance with the terms and conditions set out in the memorandum

and articles of association, for the purpose identified under sub-article

(2), and as approved by the House of Representatives.

(2) The European Financial Stability Facility shall facilitate or

provide financing to Member States in financial difficulties through

the raising of money by the issuing of financial instruments or

entering into financial arrangements with the shareholders or third

parties.

(1) Any financial instrument or financial arrangement Payment and

issued or entered into by the European Financial Stability Facility for issuing

guarantees.

the purpose of article 3(2), shall be guaranteed by the Government of

Malta subject to the terms incorporated in the European Financial

Stability Facility Framework Agreement

Provided that the guarantee issued by the Government of

Malta shall not exceed the aggregate amount of Euro 398.44 million.

(2) Any guarantee issued by the Government of Malta for

financial instruments or financial arrangements issued by the

European Financial Stability Facility beyond the purpose specified

under sub-article (1) may only be done in such manner and for such

purpose as the House of Representatives may by resolution

determine.

Passed by the House of Representatives at Sitting No. 255 of the

14th July, 2010.

M ICHAEL F RENDO

Speaker

P AULINE A BELA

Clerk to the House of Representatives