What constitutes a draw on Past Reserves?

A draw on Past Reserves can occur in several ways.

First, a draw on Past Reserves occurs if the Government or a Fifth Schedule entity spends more than the reserves it has accumulated during the current term of Government.

Second, a draw on Past Reserves takes place when an asset is sold below its fair market value and the difference is not topped up from the reserves that were accumulated in the current term of Government. Fair market value is the price that a willing buyer and willing seller, at arms length, would transact at.