Financial Provisions (Covid-19) Act 2020

Cited as:IR No. 4/2020
Jurisdiction:Ireland


Financial Provisions (Covid-19) Act 2020

2020 4

An Act to enable the State to participate in the European instrument for temporary support to mitigate unemployment risks in an emergency (SURE) established by Article 1 of Council Regulation (EU) 2020/672 of 19 May 20201 and, for that purpose, to enable the State to enter into the guarantee provided for in Article 11(2) and (3) of that Council Regulation; as respects a certain Fund (the Pan-European Guarantee Fund), the subject of a resolution of the board of directors of the European Investment Bank of 26 May 2020, and which Fund will be established in the circumstances as provided for in that resolution, to enable the State to participate in that Fund and, for that purpose, to enable the State to enter into a certain guarantee agreement and a certain contribution agreement connected with the operation of that Fund; to amend section 5 of the Strategic Banking Corporation of Ireland Act 2014 in relation to the giving of guarantees by the Strategic Banking Corporation of Ireland; to make provision for the enforcement of arbitral awards to which the Third Protocol (done at Strasbourg on 6 March 1959) to the General Agreement on Privileges and Immunities of the Council of Europe (done at Paris on 2 September 1949) applies; and to provide for related matters.

[17 July 2020]

Be it enacted by the Oireachtas as follows: 1 OJ No. L159, 20.5.2020 p.1

S-1 Definitions

1 Definitions

1. In this Act—

“Contribution Agreement” means the Contribution Agreement, the terms of which are set out inSchedule 2, to be entered into between the State and the EIB and providing for a contribution by the State to the Fund;

“EIB” means the European Investment Bank;

“Fund” means the Fund (the Pan-European Guarantee Fund), the subject of a resolution of the board of directors of the European Investment Bank of 26 May 2020, and which Fund will be established in the circumstances as provided for in that resolution;

“Fund Guarantee” means the guarantee agreement, the terms of which are set out inSchedule 3, to be entered into between the State and the EIB so as to provide a guarantee, on the part of the State, in relation to transactions carried out under the Fund;

“Minister” means the Minister for Finance;

“SURE Guarantee” means the guarantee agreement—

(a) as provided for in paragraphs (2) and (3) of Article 11 of the SURE Regulation, and

(b) the terms of which agreement are set out inSchedule 1,

to be entered into between the State and the European Commission so as to provide the guarantee, on the part of the State, referred to in that Article 11;

“SURE Instrument” means the European instrument for temporary support to mitigate unemployment risks in an emergency (SURE) established in Article 1 of the SURE Regulation;

“SURE Regulation” means Council Regulation (EU) 2020/672 of 19 May 20202 1on the establishment of a European instrument for temporary support to mitigate unemployment risks in an emergency (SURE) following the COVID-19 outbreak.

2 OJ No. L159, 20.5.2020 p.1

S-2 Application of section 8

2 Application of section 8

(1) If, on the commencement of section 8, the Fund has not been established due to the relevant circumstances not being, at that time, met, then that section shall not apply unless and until the occasion occurs on which those circumstances come to be met.

(2) In subsection (1), “relevant circumstances” means the circumstances as provided for in the resolution of the board of directors of the European Investment Bank of 26 May 2020.

S-3 SURE Guarantee may be entered into by State

3 SURE Guarantee may be entered into by State

(1) The State may enter into the SURE Guarantee.

(2) For the forgoing purpose—

(a)

the Minister may execute the SURE Guarantee and enter into the commitments provided under that guarantee, and

(b)

the Minister shall have all such powers as may be required to do any thing necessary or expedient to be done for the purposes of the State’s performing its obligations under the SURE Guarantee.

S-4 Payments out of Central Fund related to SURE Guarantee

4 Payments out of Central Fund related to SURE Guarantee

4. There may be paid out of the Central Fund, or the growing produce thereof, such sums, not exceeding, in the aggregate, the sum of €483,401,250, as may be required to enable the State to comply with its obligations under the SURE Guarantee.

S-5 Payment into Exchequer related to SURE Guarantee

5 Payment into Exchequer related to SURE Guarantee

5. All moneys received by or on behalf of the State by way of repayment of sums paid in accordance with the SURE Guarantee shall be placed to the credit of the account of the Exchequer and shall form part of the Central Fund and be available in any manner in which that Fund is available.

S-6 Reporting in relation to demands under SURE Guarantee

6 Reporting in relation to demands under SURE Guarantee

(1) This section applies in the event of a demand, under the SURE Guarantee, being made of the State to make a payment in accordance with the terms of that guarantee; a reference in any subsequent subsection of this section to a demand under the Guarantee being made is a reference to such a demand of the State being made.

(2) On the first occasion of a demand under the Guarantee being made (in this section referred to as the “first demand”), the Minister shall cause to be laid before Dáil Éireann—

(a)

within one month from that occasion, a statement as provided undersubsection (3)(a), and

(b)

within one month from each anniversary of that occasion, a further statement as provided undersubsection (3)(b).

(3) A statement under subsection (2) shall—

(a)

in the case of the statement referred to inparagraph (a) of it, specify—

(i) the sum the subject of the first demand (and, if such has been paid by the State by the time of the statement’s preparation, the sum paid by the State on foot of that demand pursuant to the SURE Guarantee), and

(ii) any sums repaid to the State in accordance with the SURE Guarantee during the period preceding the statement’s preparation,

and

(b)

in the case of a statement referred to inparagraph (b) of it, specify—

(i) any sum paid by the State on foot of the first demand pursuant to the SURE Guarantee, and

(ii) any sums repaid to the State in accordance with the SURE Guarantee,

during the period beginning on the preparation of the statement referred to in subsection (2)(a) and ending on the preparation of the statement referred to in subsection (2) (b) or, in the case of the second or any subsequent statement referred to in subsection (2)(b), during the period of 12 months preceding the preparation of the particular such statement.

(4) On the second or any subsequent occasion of a demand under the Guarantee being made, the Minister shall cause to be laid before Dáil Éireann, within one month from the occasion of that second or subsequent demand, a statement specifying the sum the subject of that second or subsequent demand; the laying of any such statement shall not relieve the obligation of the Minister to lay any statement required to be laid by subsection (2) (and any latter statement shall, in addition to the matters specified in subsection (3), specify the sum, if any, paid by the State, on foot of the second or subsequent demand, pursuant to the SURE Guarantee during the period to which that latter statement relates).

(5) This section shall cease to apply on the date the State is released from its obligations under the SURE Guarantee or when all sums paid by the State under the SURE Guarantee are repaid to the State in accordance with that guarantee’s terms.

S-7 Contribution Agreement and Fund Guarantee may be entered into by State

7 Contribution Agreement and Fund Guarantee may be entered into by State

(1) The State may enter into—

(a)

the Contribution Agreement, and

(b)

the Fund Guarantee.

(2) The amount that may be contributed by the State to the Fund under the Contribution Agreement and the amount that may be paid by the State under the Fund Guarantee shall not, in aggregate, exceed €167,500,000.

(3) For the purpose of subsection (1)

(a)

the Minister may execute the Contribution Agreement and enter into the commitments provided by that agreement,

(b)

the Minister may execute the Fund Guarantee and enter into the commitments provided by that guarantee, and

(c)

the Minister shall have all such powers as may be required to do any thing necessary or expedient to be done for the purposes of the State’s performing its obligations under the Contribution Agreement and the Fund Guarantee.

(4) Subject to subsection (5), the State may agree to an amendment being made to—

(a)

the Contribution Agreement, or

(b)

the Fund Guarantee,

or both.

(5) If any amendment is proposed to be made to the Contribution Agreement or the Fund Guarantee, a draft of the proposed agreement providing for the amendment and containing the text of the amendment shall be laid by the Minister before Dáil Éireann and the amendment shall not be made unless and until a resolution approving the amendment has been passed by that House.

(6) Any amendment made to the Contribution Agreement or the Fund Guarantee in accordance with subsections (4) and (5) shall be published in Iris Oifigiúil by the Minister.

(7) A reference in this section or section 8 or 9 to the Contribution Agreement or the Fund Guarantee shall, where the context admits, include a reference to that agreement or guarantee as amended in accordance with subsections (4) and (5).

S-8 Payments out of Central Fund related to Contribution Agreement and Fund Guarantee

8 Payments out of Central Fund related to Contribution Agreement and Fund Guarantee

8. There may be paid out of the Central Fund, or the growing produce thereof, such sums, not exceeding, in aggregate, the sum of €167,500,000, as may be required to enable the State to comply with its obligations under the Contribution Agreement and the Fund Guarantee.

S-9 Payment into Exchequer related to Contribution Agreement and Fund Guarantee

9 ...

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