Clause 4

For the purpose of raising external loans in accordance with the provisions of this Act, the Minister may authorise the creation and issue of such securities as he thinks fit.

The securities issued for raising any external loan shall bear such rate of interest, and be subject to such terms and conditions as to repayment, redemption and other matters, including provision for a sinking fund, as may be determined by or with the authority of the Minister.

In connection with the raising of any external loan, the Minister may make such arrangements as he sees fit for the underwriting of any offer for subscription or sale of the securities.

The Minister is hereby authorised to include, among the terms and conditions of any external loan, provisions for exemption from tax or for exempting from exchange control any debt charges in respect of an external loan; and the Minister shall by order make such provision as he considers necessary to give effect to any such exemption from tax or from exchange control, and any such order shall have effect notwithstanding anything in any other written law relating to the tax, or to exchange control, as the case may be.

Without prejudice to any of the foregoing provisions, the terms and conditions authorised by subsection (2) of this section shall include provision for the following matters: —

All debt charges in respect of any external loan shall be charged on the Consolidated Fund.

In this section “debt charges” includes interest, sinking fund charges, the repayment or amortisation of debt, and all expenditure in connection with the raising of loans and the service and redemption of debt created thereby.