Over 80 million dollars of the existing $100 bills will need to be phased out of the system. This, as Government seeks to introduce the new polymer bill on the market tomorrow, December 10.
Finance Minister Colm Imbert made the revelation during his contribution on the Miscellaneous Provisions (Proceeds of Crime and Central Bank) Bill 2019. Imbert said the bills were worth an estimated $8 billion dollars but with the number of damaged bills that need to be accounted for, that figure may change.
Some of the amendments to the legislation include:
- Section 27A(i) which mandates that two weeks notice must be given before the “appointed day” that any banknote was expected to be cancelled (it was previously three months)
- Section 27A(iv), a precautionary clause, that commercial banks could redeem banknotes at face value for a period of three months after the appointed day if there was “good and sufficient reason.”
- Section 27A(vi) which states that the bank, in consideration with the minister of finance, would lay out the conditions of “good and sufficient reason” as well as the necessary procedures
- Section 27A(v) which gave the finance minister the power to extend the appointed day or the three-month period to redeem the old banknote after cancellation.
The new polymer bills will be distributed to banks today.
The Bill was passed unanimously in the Senate on Saturday.