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Reserve Bank of Vanuatu (Amendment) Act 2010

REPUBLIC OF VANUATU

RESERVE BANK OF VANUATU (AMENDMENT)
ACT NO. 35 OF 2010

Arrangement of Sections

1 Amendment
2 Commencement

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Assent: 17/01/2011
Commencement: 19/01/2011

RESERVE BANK OF VANUATU (AMENDMENT)
ACT NO. 35 OF 2010

An Act to amend the Reserve Bank of Vanuatu Act [CAP 125].

Be it enacted by the President and Parliament as follows-

1 Amendment

The Reserve Bank of Vanuatu Act [CAP 125] is amended as set out in the Schedule.

2 Commencement

This Act commences on the day on which it is published in the Gazette.

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SCHEDULE

AMENDMENTS OF RESERVE BANK OF VANUATU ACT
[CAP 125]

1 Subsection 5(4)

Repeal the subsection, substitute

“(4) Despite any other provisions of this Act and subject to subsection (4A), the Minister may transfer to the ownership of the Reserve Bank, non-negotiable current market related interest rate security, or securities, with defined term issued by the Government from time to time for such an amount as is necessary for the purpose of preserving the paid-up capital from any impairment.

(4A) A transfer is to be made whenever, in the opinion of the Board, the assets of the Reserve Bank are less than the sum of liabilities and paid-up capital.”

2 At the end of section 7

Add

“(6) If:

(a) a contingent or unforeseeable event arises during a financial year: or

(b) potential losses from fraud or other non insured losses have occurred,

resulting in the Bank making a loss, the general reserves may be used to cover for the exceptional losses on the Banks domestic and foreign securities, if the losses cannot be absorbed by its resources.”