Borrowing requirements for the period 1st October to 31st December 2020

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{THIS MINISTERIAL DECISION HAS BEEN RESCINDED BY MD-TR-2020-0163] A decision made on 30 September 2020

Decision Reference: MD-TR-2020- 0126
Decision Summary Title:	Borrowing Requirement - 2020		Date of Decision Summary:	29th September 2020
Decision Summary Author:	Director of Treasury and Investment Management		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title:	Borrowing Requirement 2020		Date of Written Report:	28th September 2020
Written Report Author:	Director of Treasury and Investment Management		Written Report: Public or Exempt?	Exempt Articles 26, 33 & 34
Subject: Borrowing requirements for the period 1st October 2020 to 31st December 2020
Decision(s): The Minister decided to - Approve borrowing of between £5 million and £60 million, to be made available from the previously approved £500 million Revolving Credit Facility, to meet the funding requirements of the Consolidated Fund from 1st October 2020 to 31st December 2020. The borrowing to be paid into the Consolidated Fund. Instruct the Treasurer to drawdown between 1st October and 31st December 2020, £5 million or such other sum or sums (being not more than £60 million in total) as may be determined by the Treasurer to be appropriate having taken into account all available financial/fiscal data.
Reason(s) for Decision: The Coronavirus pandemic continues to have a significant social and financial impact on the lives of Islanders and presents a significant level of challenge for Jersey’s economy. During this unprecedented period of uncertainty for the Island, it is vital that the Minister for Treasury and Resources can make available sufficient funds to support Islanders and businesses on a timely basis. In signing MD-TR-2020-0029 the Minister declared an immediate threat to the health or safety of any of the inhabitants of Jersey and to the stability of the economy in Jersey and is satisfied that those circumstances require the application of the modifications set out in Article 24(9) of the Public Finances (Jersey) Law 2019, as amended by Public Finances (Amendment of Law) (Jersey) Regulations 2020 (“Public Finances Law”). Consequently the Public Finances Law applies with those modifications. The Public Finances Law (as modified) applies up to 30th September 2020 and allows the Minister, in the name of the States, to obtain financing of up to £500 million. To date the Minister has approved the arrangement of a Revolving Credit Facility of £500 million, but only £5 million of borrowing has taken place, which is now repaid. Whilst current estimates are that the total available in the facility will not be required in 2020, high level cash flow forecasts and known allocations for additional expenditure, indicate that the Consolidated Fund will require additional funding of between £5 million and £60 million until 31st December 2020. The Minister approved borrowing of between £5 million and £60 million, to be made available from the previously approved £500 million Revolving Credit Facility, to meet the funding requirements of the Consolidated Fund for the period 1st October 2020 to 31st December 2020. The borrowing to be paid into the Consolidated Fund. The Minister instructed the Treasurer to drawdown between 1st October and 31st December 2020, £5 million or such other sum or sums (being not more than £60 million in total) as the Treasurer may determine to be appropriate having taken into account all available financial/fiscal data.
Resource Implications: There are no human resource implications for the Government of Jersey arising from this decision, management of borrowing and the RCF fall within the current operation of the Treasury and Investment Management team. The finance costs in relation to borrowing will only be quantifiable as drawdowns are made. Provision has previously been made by the Minister from the General Reserve for costs associated with the borrowing facility which will be incurred in 2021. The Minister plans to provide details of the incurred costs as part of the required semi-annual reporting to the States Assembly. Drawdowns will be paid into the Consolidated Fund.
Action required: Group Director - Strategic Finance to inform the Director of Treasury and Investment Management that this decision has been signed. The Treasurer to make the necessary financial drawdowns as and when necessary in accordance with the terms of the Revolving Credit Facility.
Signature:		Position: Deputy S J Pinel, Minister for Treasury and Resources
Date Signed:		Date of Decision: