This Act was repealed on 2022-08-11 by Public Debt Management Act, 2022.
Loans and Guarantees (Authorisation) Act, 1969
- Commenced on 8 August 1969
- [This is the version of this document at 31 December 1996.]
- [Repealed by Public Debt Management Act, 2022 on 11 August 2022]
Part I – Preliminary
1. Short titleThis Act may be cited as the loans and Guarantees (Authorisation) Act.
2. ApplicationNothing in this Act shall apply in relation to the raising of any loan under —
Part II – General borrowing powers
3. Power to raise loansThe Minister may raise from time to time, in the Republic and elsewhere, on behalf of the Government such loans as he may deem desirable, not exceeding in the amount outstanding at any one time —
4. Application of loans
5. Debt charges
Part III – Methods of raising loans
6. Methods of raising loansSubject to the provisions of this Act, a loan may be raised under this Act by any of the following methods, that is to say:
7. Minister to determine terms, etc., of loansAny loan raised under this Act shall be raised in accordance with such conditions and upon such terms as the Minister shall, in respect of such loan, direct.
8. Functions of Bank of ZambiaIn the case of any loan raised under this Act by the issue of bonds or stock or treasury bills, the Bank of Zambia shall, as the agent of the Minister —
Part IV – Sinking funds
9. Establishment of sinking funds for redemption of bonds or stock
10. Establishment of sinking funds in other casesThe Minister may cause to be established a sinking fund for the purpose of redeeming any loan raised under this Act by agreement in writing or any loan raised under the provisions of any other written law.
11. Annual contribution to sinking fundWhenever a sinking fund is established under section nine or ten in respect of any loan, the annual rate of contribution to such sinking fund shall be sufficient to provide for the redemption, upon the expiry of the period of such loan, of not less than seventy-five per centum of the principal of such loan.
12. Deficiency in sinking fund to be charged upon general revenuesIn the event of any sinking fund established under this Act being found, at the time fixed for the repayment of any loan in respect of which it is established, to be insufficient for such redemption, the deficiency shall be a charge upon, and shall be made good out of, the general revenues of the Republic.
13. Power of Minister to give directions in respect of sinking funds
Part V – Guarantees and indemnities
14. Power to give guarantees
15. Maximum amount of guarantees
16. IndemnitiesThe Minister may, if it appears to him necessary or expedient in the public interest, indemnify any person, by agreement in writing and subject to such terms and conditions as the Minister may think fit, against any claim directly arising from any act or omission on the part of such person or his servants or agents in the performance by such person or his servants or agents of any agreement between such person and the Government.
17. Guarantees and indemnities to be paid out of general revenuesWhenever he is authorised to do so by resolution of the National Assembly, the Minister shall pay out of the general revenues of the Republic any sum required for discharging any liability incurred by the Government under any guarantee or indemnity given under this Act:Provided that any sum paid to the Government in respect of any such guarantee or indemnity by way of repayment of the sum guaranteed or indemnified or any portion thereof shall be paid into the said general revenues.
18. Application of Part V to previous guarantees and indemnitiesFor the purposes of this Part, any guarantee or indemnity given prior to the commencement of this Act, other than a guarantee or indemnity given under any written law, shall be deemed to have been given under this Act if such guarantee or indemnity—
19. Information relating to guarantees to be included in financial reportThere shall be included in the financial report prepared in respect of any financial year pursuant to the Constitution a statement showing the particulars of all guarantees given under this Act, or any other written law, and subsisting at the end of that year.[Cap. 1]
Part VI – Power to grant loans
20. Power to grant loans out of cash balances
21. Power to grant loans out of general revenues
22. Application of Part VI to loans previously grantedFor the purposes of this Part, any loan granted by the Government to any person prior to the commencement of this Act, other than a loan granted under any written law, shall be deemed to have been granted under this Act.
23. Information relating to loans granted by Government to be included in financial reportThere shall be included in the financial report prepared in respect of any financial year pursuant to Article 118 of the Constitution, a statement showing the particulars of any loan granted under this Act or any other written law in respect of which there was a balance outstanding at any time during that year:Provided that the provisions of this section shall be deemed to have been complied with if there is included in the financial report an aggregate of the particulars of any loan or loans granted to a borrower or to a class of borrowers.[As amended by No. 30 of 1972]
Part VII – Supplemental
24. Minister or other persons not responsible for fulfilment of trusts attaching to bonds, stock or treasury billsNeither the Minister nor any person appointed to perform any functions under this Act shall be under an obligation as regards the due fulfilment of any trust, whether expressed, implied or constructive, to which any bond, stock or treasury bill issued under this Act may be subject, notwithstanding that the Minister or such person has had notice that the bond, stock or treasury bill is held subject to a trust.
25. Trust fundsAny bonds or stock issued under this Act shall be deemed for all purposes to be an authorised investment for trust funds.
26. Power of Minister when National Assembly not sittingIf, during any period when the National Assembly is not sitting, the Minister considers that there is such an urgent need to raise any loan or to give any guarantee under this Act that it would not be in the public interest to delay the raising of such loan or the giving of such guarantee until the National Assembly next sits, the Minister may, if so authorised by the President, amend any statutory instrument promulgated in terms of section three or fifteen by varying any sum specified in such statutory instrument to the extent necessary to permit the raising of such loan or the giving of such guarantee, as the case may be.
27. Minister may delegate functions to public officerThe *Minister may, by statutory order, delegate to such public officer as may be specified in the order the performance of any function conferred upon the Minister under this Act:*Provided that the Minister shall not delegate the power to make any statutory instrument under this Act.
29. General restriction on raising of loans
History of this document
11 August 2022
Repealed by Public Debt Management Act, 2022
08 August 1969
|Loans and Guarantees (Authorisation) (Delegation of Functions) (No. 2) Order, 1980||Statutory Instrument 35 of 1980|
|Loans and Guarantees (Authorisation) (Delegation of Functions) (No. 2) Order, 1982||Statutory Instrument 46 of 1982|
|Loans and Guarantees (Authorisation) (Delegation of Functions) Order, 1980||Statutory Instrument 28 of 1980|
|Loans and Guarantees (Authorisation) (Delegation of Functions) Order, 1982||Statutory Instrument 32 of 1982|
|Loans and Guarantees (Authorisation) (Delegation of Functions) Order, 1984||Statutory Instrument 25 of 1984|
|Loans and Guarantees (Authorisation) (Exemption) Notice, 1983||Statutory Instrument 28 of 1983|
|Loans and Guarantees (Maximum Amounts) (Amendment) Order, 2020||Statutory Instrument 44 of 2020|