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Tuesday, January 22, 1974
Premium for the Corporation's new facility is expected to bo
calculated on a sliding scale according to the length of the period of
guarantee. The guarantee would also be given only to contracts involving
not less than a specified amcunt and on credit terms exceeding 180 days.
Although it would not be necessary to seek the Financial Secretary's
approval for a particular guarantee, all guarantees would have to be in
accordance with a policy approved by the Financial Secretary.
Under other provisions of the Bill, the capital the Corporation may
hold would be doubled from $10 million to $20 million, and the officers of
the Corporation whose appointments would have to be approved by the Governor
would be those whose salaries exceed $85,000 per annum as opposed to the
prosent ceiling of $50,000.
The former is to enable the Corporation to restore the ratio of
its cash resources to contingent liability to an acceptable level.
The latter, which affects the appointment of officers at the
Assistant Manager and higher grades, is made to up-date the original figure
which was set in 1966.
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