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Secured Borrowing by State Bodies and Agencies
PRACTICE AREA GROUP:
The Minister for Finance has made the General Government Secured Borrowings Order 2011 (SI 40/2011). The Order came into effect on 27 January 2011.
The purpose of the Order is to give effect to Sections 67 of the Credit Institutions (Stabilisation) Act 2010 which provides that secured borrowing by the prescribed persons and bodies requires the consent of the Minister for Finance. There are a significant number of government departments and agencies, state bodies and educational entities prescribed in the Order.
For local authorities, with effect from 23 December 2010 and in the case of all other prescribed bodies from 27 January 2011, the consent of the Minister for Finance to engage in secured borrowing, as set out in Section 67 (2) of the Credit Institutions (Stabilisation) Act 2010 is necessary and the consent must be sought in advance. The Department of Finance have also published a Circular with regard to the provisions of the Order.