(iii) the following securities issued by companies having their registered office and Head Office in the United Kingdom and quoted on a Stock Exchange in the United Kingdom, and units in United Kingdom Unit Trusts:
(a) common or ordinary stock and shares and preferred stock and shares on which capital moneys and dividends are payable solely in sterling;
(b) units in Unit Trusts on which, under the terms of issue, capital moneys are payable solely in sterling on liquidation or realisation;
(c) redeemable interest-bearing securities on which capital
moneys are payable solely in sterling;
(d) irredeemable interest-bearing securities on which interest is
payable solely in sterling,
which are denominated in sterling and which are held in the name or to the order of the Commissioners of Currency, the Government of British Honduras, its agencies and other official institutions with. banks or other depositaries in the United Kingdom and which are included in total official external reserves.
(2) The Guarantee
The Government of the United Kingdom undertake to maintain the sterling value in terms of the United States dollar of the balances eligible for guarantee, provided that the Minimum Sterling Proportion referred to below has been maintained by British Honduras up to and including the date of implementation of the Guarantee. The circumstances in which the Guarantee would be implemented and the terms of implementation shall be defined in consultation between the
the two
Governments.
(3) Balances Eligible for Guarantee
The balances eligible for guarantee shall be that portion of official sterling reserves by which those official sterling reserves exceed 10 per cent of total official external reserves as defined in paragraph (1)(a) above, except that no part of official sterling reserves falling under or bearing a right to conversion into a security covered by (a) and (b) of paragraph (1)(b) (iii) above shall be eligible for guarantee.
(4) The Minimum Sterling Proportion
British Honduras shall throughout the period covered by the Agreement maintain official sterling reserves in such proportion to total official external reserves as may be fixed by consultation between the two Governments. This proportion shall be known as the Minimum Sterling Proportion.
(5) Review
(a) The provisions of the Agreement may be reviewed at any time by agreement between both parties.
(b) The provisions of the Agreement shall be reviewed within six months prior to the expiry of a period of three years from the date of entry into force of the Agreement.
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