No. 4/2015 12 Priet-rc Dnnr MenrecEh{riNl' Cap.Z2:21 Borrowing purposes 'fhe Minister may borrow money in terms of section 1 I for the following purposes only- (a) (b) (c) (d) finance national priority infrastructure and productive sector projects with high economic and social impacq provided debt shall only be incurred on projects that can generate suflicient revenues to repay the loan; ter to finance Government budget deficits; to maintain a credit balance on the Treasurv main account at a level determined by the Minister; to provide such Government loans or credits to local authorities, public entities and any other entity referred to in the definition of "public debt" in section 2(1): (e) to honour obligations arising under Government guarantees; (0 to refinance outstanding debt or repay a loan prior to its date ofrepaynrcnt: (g) to immediately protect, mitigate or eliminate eff-ects caused by a natural or environmental disaster or any other national emergency; (h) (i) 0) 13 to replenish international reserves; to meet requests by the Reserve Bank to issue Govemment securities for the sole purpose of supporting monetary policy objectives; and to fulfil any other purpose as the National Assembly may by resolution approve. Manner of raising State loans ( I ) The Minister may, when so authorised in terms of section I 1., borrow money, subject to subsection (3), upon such conditions as he or she may fix. (2) Prior to borrowing money the Minister (a) (b) ensure that it is consistent with Govemment economic and financial policies and the Medium'ferm Debt Management Strategyl and (c) satisfy himself or herself that the Government has or is likely to have on current projections the linancial ability to meet all the obligations under the loan, including future loan payments; and (d) consult with the Attorney-General and obtain in writing from the AttorneyGeneral an opinion approving the legal aspects of the loan agreement. (3 ) Without derogating from the generality of subsection ( 1), the Minister may, in terms of that subsection, borrow by way (a) (b) (c) (d) (e) 14 shall- ensure that it is in the public interest to do so; and of- loans; or the issue of bonds or stock; or the issue of Treasury bills; or an advance or bank overdraft; or a combination of any of the above. Certain State loans exempt from tax The Minister may fix as a condition of a State loan that the capital and the interest payable thereon shall be exempt, either irr whole or in part, from all or any pafiicular tax payable in terms of any enactment and, if the Minister does so provide, the capital and the interest payable thereon shall be so exempt: t08