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Business Disruption Loan Guarantee Scheme: Extension

A formal published “Ministerial Decision” is required as a record of the decision of a Minister (or an Assistant Minister where they have delegated authority) as they exercise their responsibilities and powers.

Ministers are elected by the States Assembly and have legal responsibilities and powers as “corporation sole” under the States of Jersey Law 2005 by virtue of their office and in their areas of responsibility, including entering into agreements, and under any legislation conferring on them powers.

An accurate record of “Ministerial Decisions” is vital to effective governance, including:

  • demonstrating that good governance, and clear lines of accountability and authority, are in place around decisions-making – including the reasons and basis on which a decision is made, and the action required to implement a decision

  • providing a record of decisions and actions that will be available for examination by States Members, and Panels and Committees of the States Assembly; the public, organisations, and the media; and as a historical record and point of reference for the conduct of public affairs

Ministers are individually accountable to the States Assembly, including for the actions of the departments and agencies which discharge their responsibilities.

The Freedom of Information Law (Jersey) Law 2011 is used as a guide when determining what information is be published. While there is a presumption toward publication to support of transparency and accountability, detailed information may not be published if, for example, it would constitute a breach of data protection, or disclosure would prejudice commercial interest.

A decision made on 30 March 2021

Decision Reference: MD-TR-2021-0032

Decision Summary Title:

Business Disruption Loan Guarantee scheme extension

Date of Decision Summary:

29th March 2021

Decision Summary Author:

Associate Director, Financial Services

Decision Summary:

Public or Exempt?

Public

Type of Report:

Oral or Written?

Written

Person Giving

Oral Report:

n/a

Written Report

Title:

Business Disruption Loan Guarantee scheme – March 2021 extension

Date of Written Report:

29th March 2021

Written Report Author:

Associate Director, Financial Services

Written Report :

Public or Exempt?

Public

Subject: Extension of the Business Disruption Loan Guarantee Scheme

Decision(s): The Minister decided to extend the Business Disruption Loan Guarantee Scheme to 30 June 2021. The Minister also decided to extend the Scheme Maturity Date to 30 June 2027, permitting facilities with terms up to 6 years to be issued under the scheme.

Reason(s) for Decision: The extension allows the scheme to be used until 30 June 2021, allowing businesses to borrow from banks participating in the scheme for an additional 3 months.

 

Article 28 of the Public Finances (Jersey) Law 2019 provides that:

 

28      Guarantees and indemnities

(1)     The Minister may, in the name of the States, provide guarantees or indemnities.

(2)     The total amount of all guarantees and indemnities under paragraph (1) that may be provided during a financial year must not exceed £3 million.

(3)     The total outstanding amount of all guarantees and indemnities under paragraph (1) at any given time must not exceed £20 million.

Resource Implications: The approach does not allocate further funding to the scheme, but relies on the Minister’s ability to issue guarantees under the Public Finances (Jersey) Law 2019. Accordingly, the extension of the scheme in this manner restricts the ability of the Minister to issue guarantees for other purposes.

Government employees have been engaged in monitoring the scheme since its launch at the beginning of April 2020. This will continue regardless of whether the scheme is extended due to the need to monitor existing exposures, so the staffing impact of extension is limited.

Action required: Associate Director, Financial Services to ensure this decision is published on www.gov.je and communicated to the banks who are participants in the Business Disruption Guarantee Scheme, and to confirm the agreement of those banks who wish to continue to participate in the scheme until 30 June 2021.

Signature:

 

 

Position: 

Deputy Susie Pinel

Minister for Treasury and Resources

Date Signed:

 

Date of Decision

 

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