Pursuant to section 160(3) of the Crown Entities Act 2004, I, Jane Katharine Meares, Treasury Solicitor, hereby give notice that on 21 February 2009, The Honourable Simon William English, Minister of Finance, and The Honourable Anthony Boyd Williams Ryall, Minister of Health, gave approval under section 160(1)(b) of the Crown Entities
Act 2004, in relation to section 162 of that Act, for the
New Zealand Blood Service (NZBS) to enter into a credit arrangement with Westpac New Zealand Limited, with a maximum credit facility of $8.3 million, subject to the following conditions:
(a) Within the $8.3 million maximum credit facility,
the NZBS can enter into short-term borrowing up
to $5.0 million to cover short-term fluctuations in working capital and the remaining $3.3 million is used to cover the balance of existing term debt;
(b) the existing overdraft facility of $1.0 million is included in the $5.0 million working capital limit;
(c) the maximum credit facility of $8.3 million will be, by the end of the 2014/2015 financial year, reduced to $5.0 million and will only be used to cover
short-term working capital fluctuations; and
(d) funds borrowed under the $5.0 million short-term working capital facility:
(i) are to be repaid as a first priority on the receipt of the outstanding payments that led to the short-term cash shortfall; and
(ii) will not be used for long-term debt financing or capital expenditure above the level of planned depreciation (per the current NZBS Statement of Intent).
Dated at Wellington this 25th day of June 2009.
JANE KATHARINE MEARES, Treasury Solicitor.