Advice sought in K1.5b loan

TREASURER Charles Abel says the delay in tabling in Parliament a report on the Credit Suisse loan of US$500 million (K1.5 billion) is because Government had to seek legal advice.
The Government has already drawn down US$310 million (K979 million) even though a condition in the loan stated that it should be tabled in Parliament first. Abel yesterday said the balance of US$190 million (K600 million) would be made available once the loan agreement executed between the Credit Suisse Bank and the Government in July last year was tabled in Parliament.
The agreement was for the state to borrow up to US$500 million to finance the budget deficit. “Given the legislative requirements, the Department of Treasury is required to table all copies of the executed loan and guarantee agreements for the purpose of informing Parliament,” Abel said.
“All loans and guarantees issued by the State are governed by these legislations and require compliance of the borrower, the State, to inform Parliament.
“Credit Suisse had inserted this condition on the State to table a copy of the executed loan agreement in Parliament.”
The government had already drawn down US$310 million (K979 million) in two separate tranches – US$200 million (K640 million) in August 2016 and US$110 million (K352 million) in January this year.
“It is now necessary that the State complies with this condition to enable Credit Suisse to disburse the remaining balance,” Abel said.
“Failing to comply with this condition will jeopardise the Government’s efforts to finance the budget deficit.”