§ 5 — Borrowing limit

5.—(1) Subject to subsection (2), the Minister must not raise a loan under this Act if either condition in paragraph (a) or (b) is satisfied:(a)

the total at any time of the following exceeds $90,000,000,000:(i)

the sum of the proposed borrowing;

(ii)

the total amount of sums borrowed under any loan earlier raised under this Act;

(b)

the total effective interest paid or payable within (or both) the relevant period on all outstanding securities issued under this Act is more than the interest threshold amount of $5,000,000,000.

(2) Subsection (1)(a) does not apply to any of the following:(a)

a borrowing transaction in a year that —(i)

the Minister (in person) designates to be for the purpose of refinancing a previous borrowing under this Act; and

(ii)

is for a sum less than the total amount of securities issued under this Act and redeemed or with a maturity date within the same year;

(b)

all securities issued under this Act that are loaned by the MAS under any securities lending arrangement under section 18, or held by the MAS on behalf of the Government for the purpose of such an arrangement.

(3) In subsection (1)(b), the effective interest on all outstanding securities issued under this Act is the total of the yield to maturity for every security so issued multiplied by the face value of the security, where “yield” means the rate of return on any such security computed on the basis of the price of the security, the total interest payments and the period commencing from the date of issue of the security under this Act to the maturity date of that security.

(4) The relevant period in subsection (1)(b) means the financial year immediately before the financial year in which the proposed loan to be raised under this Act is raised.

(5) To ascertain on any occasion whether any condition in subsection (1)(a) or (b) is satisfied, any moneys raised in a currency other than Singapore dollars must be converted into Singapore dollars as at the following rate of exchange, being a rate that the MAS certifies to be then appropriate:(a)

for the purpose of subsection (1)(a)(i), as at the rate of exchange on the last day of the financial year immediately before the date the amount is to be raised;

(b)

for the purpose of subsection (1)(a)(ii) in connection with sums borrowed under any loan earlier raised under this Act, as at the rate of exchange as follows:(i)

where any security issued under this Act for the sum so borrowed has matured or has been redeemed — on the maturity date of the security or the date of its redemption, if earlier;

(ii)

where any security issued under this Act for the sum so borrowed has not been redeemed — on the day referred to in paragraph (a) for the same occasion;

(c)

for the purpose of subsection (1)(b), as at the rate of exchange on the day when the amount of interest is to be paid or is payable, and that the MAS certifies to be then appropriate.

—(1) Subject to subsection (2), the Minister must not raise a loan under this Act if either condition in paragraph (a) or (b) is satisfied:(a)

the total at any time of the following exceeds $90,000,000,000:(i)

the sum of the proposed borrowing;

(ii)

the total amount of sums borrowed under any loan earlier raised under this Act;

(b)

the total effective interest paid or payable within (or both) the relevant period on all outstanding securities issued under this Act is more than the interest threshold amount of $5,000,000,000.

(2) Subsection (1)(a) does not apply to any of the following:(a)

a borrowing transaction in a year that —(i)

the Minister (in person) designates to be for the purpose of refinancing a previous borrowing under this Act; and

(ii)

is for a sum less than the total amount of securities issued under this Act and redeemed or with a maturity date within the same year;

(b)

all securities issued under this Act that are loaned by the MAS under any securities lending arrangement under section 18, or held by the MAS on behalf of the Government for the purpose of such an arrangement.

(3) In subsection (1)(b), the effective interest on all outstanding securities issued under this Act is the total of the yield to maturity for every security so issued multiplied by the face value of the security, where “yield” means the rate of return on any such security computed on the basis of the price of the security, the total interest payments and the period commencing from the date of issue of the security under this Act to the maturity date of that security.

(4) The relevant period in subsection (1)(b) means the financial year immediately before the financial year in which the proposed loan to be raised under this Act is raised.

(5) To ascertain on any occasion whether any condition in subsection (1)(a) or (b) is satisfied, any moneys raised in a currency other than Singapore dollars must be converted into Singapore dollars as at the following rate of exchange, being a rate that the MAS certifies to be then appropriate:(a)

for the purpose of subsection (1)(a)(i), as at the rate of exchange on the last day of the financial year immediately before the date the amount is to be raised;

(b)

for the purpose of subsection (1)(a)(ii) in connection with sums borrowed under any loan earlier raised under this Act, as at the rate of exchange as follows:(i)

where any security issued under this Act for the sum so borrowed has matured or has been redeemed — on the maturity date of the security or the date of its redemption, if earlier;

(ii)

where any security issued under this Act for the sum so borrowed has not been redeemed — on the day referred to in paragraph (a) for the same occasion;

(c)

for the purpose of subsection (1)(b), as at the rate of exchange on the day when the amount of interest is to be paid or is payable, and that the MAS certifies to be then appropriate.