(1) Subject to article 181 of the Constitution, the Minister has the sole authority to lend public funds on behalf of Government.

(2) The Public Debt Management Office shall, before the grant of a loan

(a) assess the credit risk to Government of providing the loan; and

(b) propose the rate of interest to cover the cost and the credit risk of Government.

(3) The Public Debt Management Office shall submit to the Minister, in writing,

(a) the result of the risk assessment;

(b) the method used in the assessment; and

(c) the proposed rate of interest.

(4) The Minister shall enter into a government lending transaction only where the risk assessment concludes that the borrower has the financial ability to service the loan on the due date.

(5) Unless otherwise determined by Parliament, the borrower shall pay to Government, interest at a rate determined by the Minister to cover the cost of the lending transaction and the credit risk of Government.

(6) A government lending transaction shall be supported by appropriate legal documentation executed by the borrower agreeing to service the debt obligation of that borrower under the transaction.

(7) Where a borrower neglects or fails to service a debt obligation under a government lending transaction, the Minister shall

(a) proceed to enforce the rights of Government under that transaction, and

(b) pursue any action necessary to recover from the borrower, outstanding moneys owed to Government under the agreement.