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L'înformâtion et les sèrvices publyis pouor I'Île dé Jèrri

Business Disruption Loan Guarantee Scheme: Extension to 31 December 2020

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A decision made on 18 September 2020

Decision Reference: MD-TR-2020-0113

Decision Summary Title:

Business Disruption Loan Guarantee scheme extension

Date of Decision Summary:

14th September 2020

Decision Summary Author:

Lead Policy Advisor, Financial Services

Decision Summary:

Public or Exempt?

Public

Type of Report:

Oral or Written?

Written

Person Giving

Oral Report:

n/a

Written Report

Title:

Business Disruption Loan Guarantee scheme - extension

Date of Written Report:

14th September 2020

Written Report Author:

Lead Policy Advisor, Financial Services

Written Report :

Public or Exempt?

Public

Subject: Extension of the Business Disruption Loan Guarantee Scheme

Decision(s): The Minister decided to extend the Business Disruption Loan Guarantee Scheme to 31 December 2020, with the maximum value of guarantees that can be given during that period being £3 million.

Reason(s) for Decision: The extension allows the scheme to be used until the end of 2020, allowing businesses to borrow from banks participating in the scheme for an additional 3 months.

 

Article 28 of the Public Finances (Jersey) Law 2019 provides that:

 

28      Guarantees and indemnities

(1)     The Minister may, in the name of the States, provide guarantees or indemnities.

(2)     The total amount of all guarantees and indemnities under paragraph (1) that may be provided during a financial year must not exceed £3 million.

(3)     The total outstanding amount of all guarantees and indemnities under paragraph (1) at any given time must not exceed £20 million.

 

The maximum value of guarantees that can be given by the Minister to the end of 2020 is therefore £3 million. No other guarantees have been given under Article 28(1) in 2020. The total amount outstanding under Article 28(3) is less than £17 million.

Resource Implications: This decision relies on the use of the Minister’s ability to issue guarantees under Article 28 of the Public Finances (Jersey) Law 2019. Law Officer time is required to draft an amendment to the agreement with banks, which is expected to be limited and manageable within normal business resource.

Action required: Lead Policy Advisor, Financial Services to ensure this decision is published on www.gov.je and communicated to the banks who are participants in the Business Disruption Guarantee Scheme, and confirm their approval to enter in to an amended contract expiring at 31 December 2020.

Signature:

 

 

Position: 

Deputy Susie Pinel

Minister for Treasury and Resources

Date Signed:

 

Date of decision:

 

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