Mr Speaker, the issue I was discussing with the Hon Majority Leader on the US$1.5 billion facility is the issue about -- first, it has been corrected by the Hon Chairman of the Committee, that the all-in cost for the facility is 20.5 per cent per annum. That is correct.
The issue, however, is that a first tranche would be drawn down in 2018, and then in 2020, another tranche of US$500 would be drawn down. The third and last tranche would be drawn down in 2023.
My concern, first of all, which is not clear in the Report, is that if we commit the entire US$1.5 billion and then the cost that we would be paying for servicing the debt is 20.5 per cent, are we going to pay interest on the entire US$1.5 billion starting from now, or it would be limited only to the amount drawn down ?
That is not clear and I need that to be clarified so that we do not pay interest for funds that we do not utilise. If we are not going to pay interest on the entire US$1.5 billion but on only US$500, then we should limit ourselves to US$500 for now.
Mr Speaker, the other issue is that in 2023 would this rate that we approve now be applicable? In 2023, situations might change and we might have a better rate, probably, 10 per cent or 15 per cent lower than the 20.5 per cent.
So, if we commit US$1.5 billion now, even though if we are not going to pay interest on the entire money but only on the drawn down figure, in 2023 when the
conditions improve and we could get a better deal, we would be locked up to pay the 20.5 per cent. That is another issue.
Mr Speaker, the third issue is that the Facility is for ten years so, in 2023, we would have done about five years into it already. So, does it mean that the drawn down figure in 2023 would only last five years? That is also not clear.
The last point is that when is the repayment going to start? The Facility is for 10 years, we are taking it in 2018, when are we going to start the repayment? That is also not clear in the Report.
Mr Speaker, if answers to all these questions are provided, you could put the Question.