GOVERNMENT BORROWING AND GRANTING OF LOANS TO AIR MALTA PLC ACT

GOVERNMENT BORROWING AND GRANTING

OF LOANS TO AIR MALTA PLC

CHAPTER 506

GOVERNMENT BORROWING AND GRANTING OF

LOANS TO AIR MALTA PLC ACT

To authorise and regulate the raising of loans for the purpose of

entering into re-lending agreements with Air Malta plc.

19th November, 2010

ACT XVIII of 2010 .

The short title of this Act is the Government Borrowing

and Granting of Loans to Air Malta plc Act.

In this Act, unless the context otherwise requires -

"Consolidated Fund" has the same meaning as is assigned to it

under article 124 of the Constitution;

"Loan Agreement" means any agreement, approved by the

European Commission in terms of the European Community

Guidelines on State Aid for Rescuing and Restructuring Firms in

Difficulty (2004/C 244/02), providing for the lending of money to

Air Malta plc in terms of this Act;

"Minister" means the Minister responsible for finance.

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

of Malta may, for the purposes of article 4, borrow sums of money

in Malta for an amount which in total does not exceed fifty-two

million Euro, and such other sums of money as the House of

Representatives may from time to time by resolution authorise.

(2) For the purpose of raising the aforesaid sums of money by

way of loan, the Minister is hereby authorised to borrow the said

sums of money on such terms and subject to such conditions as the

said Minister may approve under the provisions of the Local Loans

(Registered Stock and Securities) Ordinance, in order to issue stock

in Malta

Provided that the Minister may also, when he deems it

expedient to do so for reasons of urgency, authorise the temporary

use of funds from the Consolidated Fund in order to meet the

financing requirements of the Loan Agreement until such time as

the proceeds of the borrowing referred to in article 3 shall be

obtained.

(1) Notwithstanding any other provision of law, any

money borrowed under the authority of this Act shall be

appropriated and applied for the purpose of entering into re-lending

agreements concluded between the Government of Malta, as lender,

and Air Malta plc, as borrower, for an identified amount, in

pursuance and within the framework of a Loan Agreement entered

into for purposes of the rescuing and restructuring of Air Malta plc.

(2) The re-lending of money borrowed in terms of this Act for

any purpose other than that 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.