Central Bank of Belize (Amendment) Act No. 5 of 2022

BELIZE:
CENTRAL BANK OF BELIZE (AMENDMENT) ACT, 2022 ARRANGEMENT OF SECTIONS

1. Short title.
2. Amendment of section 3.
3. Repeal and replacement of section 8.
4. Amendment of section 9.
5. Amendment of section 25.
6. Amendment of section 40.
7. Commencement.
   Central Bank of Belize

No. 5] Central Bank of Belize 17 Short title. AN ACT to amend the Central Bank of Belize Act, Chapter 262 of the Substantive Laws of Belize, Revised Edition 2020; to further capitalize the Central Bank of Belize; and to provide for matters connected therewith or incidental thereto. (Gazetted 26th March 2022). BE IT ENACTED, by and with the advice and consent of the House of Representatives and Senate of Belize and by the authority of the same, as follows:

1. This Act may be cited as the
   CENTRAL BANK OF BELIZE (AMENDMENT) ACT, 2022, No. 5 of 2022 I assent, (H.E. MS. FROYLA TZALAM) Governor-General 24th March 2022

18 Central Bank of Belize [No. 5 and shall be read and construed as one with the Central Bank of Belize Act, which is hereinafter referred to as the principal Act.
2. The principal Act is amended in section 3 by inserting
the following terms and their corresponding definitions in their proper alphabetical sequence– ““investment grade” means a grade given to any security by any two or more internationally recognized credit rating agencies to indicate that the security is eligible for investment and, in the case of debt instruments, that it has at least an adequate capacity to pay interest and repay capital;” “securities” means shares, stock, treasury bills, treasury notes, bonds including commercial paper, corporate bonds and municipal bonds, notes (other than promissory notes), debentures, debenture stock, and units or shares in a mutual or pooled fund or unit trust scheme;”.
3. The principal Act is amended by repealing section 8 and
substituting it with the following– CAP. 262. Amendment of
section 3.
Repeal and replacement of
section 8.
“Capital of the
Bank.
8.–(1) The Bank shall have an authorized capital of fifty million Belize dollars. (2) The paid-up capital of the Bank shall be forty million dollars. (3) On the recommendation of the Board, the authorised and paid-up capital of the Bank may be increased, by resolution of the House of Representatives, by such amounts, in such manner and at such times as may be decided from time to time, provided that any additional paid-up capital shall be paid from the Consolidated Revenue Fund.”.

No. 5] Central Bank of Belize 19
4. The principal Act is amended in section 9 by repealing
sub-section (1) and substituting it with the following– Amendment of
section 9.
“General
Reserve Fund.
9.–(1) The Bank shall establish a General Reserve Fund into which shall be paid thirty per cent of the net profit made by the Bank during each financial year and the remainder of such profit after deducting any sum paid into reserve under this sub-section shall be paid by the Bank to the Accountant General for the Consolidated Revenue Fund.”. Amendment of
section 25.
5. The principal Act is amended in section 25 (3) as follows–
(a) in paragraph (d), by deleting the word “and”; (b) in paragraph (e), by deleting the full stop and substituting it with a semi colon; and (c) by inserting after paragraph (e), the following new paragraph– “(f) AA, Aa, the corresponding rating equivalent or higher investment grade securities which are marketable in money and capital markets abroad.”.
6. The principal Act is amended in section 40 as follows–
(a) in paragraph (b), by deleting the comma and substituting it with a semi colon; and (b) by inserting immediately after paragraph (b), the following new paragraph– “(c) such other collateral security as the Board may determine prudent and satisfactory,”. Amendment of
section 40.

7. This Act shall come into force on a date appointed by
   the Minister by Order published in the Gazette. 20 Central Bank of Belize [No. 5 Printed in Belize by the Government Printer #1 Power Lane, Belmopan, Belize, C.A. Commencement.