Foreign and Domestic Loans; Bonds, Notes, and Obligations. –
(a) Loans, Credits, and Other Forms of Indebtedness. – The Bangsamoro Government may contract loans, credits, and other forms of indebtedness to finance the construction, installation, improvement, expansion, operation or maintenance of public utilities, infrastructure facilities, housing projects, acquisition of real property, implementation of other capital investment projects, and for the development and welfare of the people of the Bangsamoro.
Subject to acceptable credit worthiness, and in compliance with the Constitution, relevant laws and regulations, such loans may be secured from domestic and foreign lending institutions, except foreign and domestic loans requiring sovereign guaranty, whether explicit or implicit, which would require the approval of the National Government.
The Parliament by a vote of the majority of all its members may authorize the Chief Minister to contract such domestic or foreign loans.
The National Government shall assist the Bangsamoro Government in complying with the requirements for a speedy issuance of the sovereign guaranty to finance local infrastructure and other socioeconomic development projects in accordance with the Bangsamoro Development Plan. Within thirty (30) days from the submission by the Bangsamoro Government of its application for sovereign guaranty, the National Government shall inform the Bangsamoro Government of the actions taken on the application.
(b) Bonds, Notes, Debentures, and Obligations. – The Bangsamoro Government shall have the authority to issue bonds, debentures, securities, collaterals, notes, obligations, and other debt papers or documents, as well as redeem or retire the same, pursuant to a law enacted by the Parliament, to finance self-liquidating and income-producing development or livelihood projects pursuant to the priorities established in its development plan.
(c) Payment of Loans and Indebtedness. The Bangsamoro Government shall appropriate in its annual budget the amounts sufficient to pay its incurred loans and indebtedness: Provided, That the amount of appropriations for debt servicing shall not exceed twenty percent (20%) of the regular sources of revenue, excluding those coming from grants, endowments, donations, loans, foreign assistance and official development assistance of the Bangsamoro: Provided, further, That not more than twenty percent (20%) of the block grant shall be utilize for the loan payments.
(d) Publication. – Any domestic or foreign-assisted loan and the purpose thereof shall be published once a week for two (2) consecutive weeks in at least one (1) newspaper of general circulation in the Bangsamoro Autonomous Region.
