Utilisation cap for the Revolving Credit Facility

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A decision made on 8 April 2022

Decision Reference: MD-TR-2022-262		Public
Subject: Utilisation cap for the Revolving Credit Facility
Report Title: Utilisation cap for the Revolving Credit Facility		Exempt (Article 34(b))
Decision(s): The Minister agreed to fix a quarterly utilisation cap on the Revolving Credit Facility and authorised the Treasurer of the States to complete monthly drawdown, rollover and repayment requests
Reason for Decision(s): A utilisation cap on the Revolving Credit Facility of up to £120,806,369 in total is necessary to allow the Government of Jersey to meet its cashflow and liquidity requirements as they fall due.
Resource Implications: The decision to set a drawn down cap incurs no costs but any utilisation of the Revolving Credit Facility (RCF) will incur interest costs at the Risk Free Rate plus the approved margin. The estimated financing costs of the RCF are included within the Government Plan 2022-25, albeit the actual outturn will be lower given the limited use of the RCF to date. Once a utilisation is made the Consolidated Fund cash balance will increase by the amount of the request, the investment return on this amount is deemed to be negligible over the short period of time. The completion of the utilisation request to the agent bank and the management of the transfers form part of the day-to-day activities of the Treasury and Exchequer.
Action Required: The Head of Financial Governance to notify the Director of Treasury and Investment Management when the decision has been signed.
Signature:	Signed By: Minister for Treasury and Resources
Date Signed:	Date of Decision (If different from Date Signed):