Part 8
Managements of Governmental Debt

Article (37)

1. The Ministry shall assume and follow up the management of the Governmental debt. For the purposes of this By-law, the Government Debt means any loans concluded by the Department or guaranteed by the Government from any natural or corporate person or local or foreign private bodies or from governments, financial houses or international corporations against its pledge to reimburse the withdrawn amounts together with the additional costs consequent thereon as per the relevant agreements.

2. The Ministry as well as the Ministry of Planning, each according to its competency, shall forward recommendation to the concerned party to obtain loans for the Department in pursuance to the adopted laws and regulations. No other party shall be allowed to do so.

Article (38)

The Department shall not use any loan obtained on the basis of this By-law for purposes other than those for which the borrowing was made, unless a prior approval is obtained from the Council of Ministers upon the recommendation by the Minister and the Minister of Planning.

Article (39)

The Department shall request the Ministry to appropriate sufficient allocations in its proposed budget to face the burden of the governmental debt relevant to it which represents the installments and interests on the withdrawn and reserved sums from the governmental debt and the differences arising from exchange rate fluctuations, re-evaluating or re-scheduling the governmental debt at the maturity dates thereof.

Article (40)

The Department shall provide the Ministry and the Ministry of Planning with the agreements and particulars of its loans once they have been signed, together with a copy of the withdrawal form of each withdrawal transaction from the loans.

Article (41)

If any party requests a governmental guarantee for any loan or loan debenture, the Ministry should, prior to giving approval on the guarantee, study the financial position of the borrowing party to ensure its capability to meet the obligations consequent upon the borrowing.

Article (42)

The governmental debt may be paid before its final maturity date in the following cases:

1. If the debt agreement provides for its payment at optional dates.

2. If its payment would realize a saving for the Department including the principal or the interest thereof.

3. If the payment thereof was for the purpose of obtaining another less costly loan.

Article (43)

The Council of Ministers may, upon the recommendation of the Minister, approve the Ministry's obtaining of internal and external loans for re-lending under lending agreements of a department, institution, concessionaire company or any public-shareholding company where the Government's shareholding in its paid-up capital is not less than 51%, under agreements whose conditions are laid out by the Council of Ministers.

Article (44)

Any department, concessionaire company or public-shareholding company in which the Government participates in its paid-up capital by not less than 51%, if it obtains any loan or the Government's guarantee of its loans, should submit periodical statements of its financial position and closing accounts to the Ministry.