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

Revolving Credit Facility: Transition from London InterBank Offered Rate

A formal published “Ministerial Decision” is required as a record of the decision of a Minister (or an Assistant Minister where they have delegated authority) as they exercise their responsibilities and powers.

Ministers are elected by the States Assembly and have legal responsibilities and powers as “corporation sole” under the States of Jersey Law 2005 by virtue of their office and in their areas of responsibility, including entering into agreements, and under any legislation conferring on them powers.

An accurate record of “Ministerial Decisions” is vital to effective governance, including:

  • demonstrating that good governance, and clear lines of accountability and authority, are in place around decisions-making – including the reasons and basis on which a decision is made, and the action required to implement a decision

  • providing a record of decisions and actions that will be available for examination by States Members, and Panels and Committees of the States Assembly; the public, organisations, and the media; and as a historical record and point of reference for the conduct of public affairs

Ministers are individually accountable to the States Assembly, including for the actions of the departments and agencies which discharge their responsibilities.

The Freedom of Information Law (Jersey) Law 2011 is used as a guide when determining what information is be published. While there is a presumption toward publication to support of transparency and accountability, detailed information may not be published if, for example, it would constitute a breach of data protection, or disclosure would prejudice commercial interest.

A decision made 11 June 2021:

Decision Reference: MD-TR-2021-0072

Decision Summary Title:

Revolving Credit Facility – Transition from LIBOR

Date of Decision Summary:

9th June 2021

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:

Revolving Credit Facility – Transition from LIBOR to a Risk Free Rate

Date of Written Report:

9th June 2021

Written Report Author:

Director of Treasury and Investment Management

Written Report :

Public or Exempt?

Exempt

Article 26

Subject:

Revolving Credit Facility – Transition from LIBOR to a Risk Free Rate

 

Decision(s): 

The Minister for Treasury and Resources decided to:-

 

 

  • Authorise: (a) the Group Director, Strategic Finance of the Treasury & Exchequer Department of the States of Jersey; and (b) the Director, Treasury and Investment Management of the Treasury & Exchequer Department of the States of Jersey, to sign:

a)      the ARA; and

b)      all other documents required

 (i) to enter into the ARA;

(ii) under or in connection with the ARA; and/or

(iii) to effect the amendment and restatement of the Revolving Credit Facility Agreement (other than the Authorised Signatory’s Certificate).

 

 

Reason(s) for Decision:

The main financial regulator in the UK, the Financial Conduct Authority, has announced that banks should prepare for LIBOR rates to no longer exist post 2021. As part of the process for agreeing the extension of the Revolving Credit Facility the lending banks have requested that the supporting documentation is transitioned away from LIBOR to the new Risk Free Rates.

 

Under Article 28 of the States of Jersey Law 2005 a Minister may delegate, wholly or partly, functions conferred upon or vested in the Minister under that Law, any other enactment or any enactment of the United Kingdom having effect in Jersey, to one of his or her Assistant Ministers or an "officer".  The Minister wishes to delegate authority to sign the ARA and all other documentation relating to the ARA (other than the Authorised Signatory’s Certificate) to: (a) the Group Director, Strategic Finance of the Treasury & Exchequer Department of the States of Jersey; and (b) the Director, Treasury and Investment Management of the Treasury & Exchequer Department of the States of Jersey, each of whom is an "officer" for the purposes of Article 28 of the States of Jersey Law 2005.

 

Article 30(1) of the States of Jersey Law 2005 requires a Minister who delegates functions under Article 28 of that Law to present to the States a report specifying the functions delegated and to whom.  Article 30(2) of the States of Jersey Law 2005 recognises that a Minister is not required to present a report under Article 30(1) of that Law where the delegation is so immediate and of such brief duration that it is not practicable to present the report before the delegation ends.  As the delegation authorised by this Ministerial Decision, and to be made under Article 28 of the States of Jersey Law 2005, is solely for the purpose of signing the documents referenced above and it is not practicable to present the report before the delegation ends, the Minister, in accordance with Article 30(2) of the States of Jersey Law 2005, is not required to present a report under Article 30(1) of that Law in respect of such delegation.

Resource Implications: 

The administration of the Revolving Credit Facility is part of the day-to-day activity of the Treasury & Exchequer. Legal counsel and independent advisors have been engaged to complete the process, budget for their costs is included within the Government Plan 2021-24.

Action required:

Head of Financial Governance to inform the Director of Treasury and Investment Management that this decision has been signed.

 

The ARA and accompanying documents to be signed by: (a) the Group Director, Strategic Finance of the Treasury & Exchequer Department of the States of Jersey; and (b) the Director, Treasury and Investment Management of the Treasury & Exchequer Department of the States of Jersey.

 

Signature:

 

 

 

 

Position:  Deputy S J  Pinel, Minister for Treasury and Resources

Date Signed:

 

Date of Decision:

 

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