(1) The creation of a Sinking Fund may be authorised by Parliament in accordance with section 17 (3) of the Loans Act, 1970 (Act 335) or under any other enactment and this authority shall be conveyed to the Bank of Ghana and the Controller and Accountant-General by letter which shall also specify the annual contribution and the rate of interest which is to be compounded.

(2) A Sinking Fund once established cannot be abolished without the authority of Parliament.