(1) Government of Nepal shall have the right to take foreign credit. (2) For the implementation of the plans and programs of the Government of Nepal, State Government and local level or the project approved by the Government of Nepal, the total number of credits collected by the Government of Nepal from any foreign government, foreign government bank or financial institution or agency shall be maintained at the prevailing price of the total domestic product of the previous financial year. : The amount of foreign currency at the prevailing exchange rate not exceeding one-third of the amount of the currency can be taken once or several times.
(3) According to sub-section (2): the expenditure of the foreign loan taken will be on the Federal Reserve Fund.
(4) Notwithstanding anything written in sub-section (3), if the Government of Nepal takes a loan from any foreign government, foreign government bank or financial institution or agency for the provincial government or local level, the expenditure of such loan amount shall be borne by the respective provincial reserve fund or local reserve fund.
(5) The period of payment of loan and interest of loan taken in accordance with this/clause shall be as mentioned in the agreement with the foreign government, foreign government bank or financial institution or agency providing the loan.
(6) The Government of Nepal may, in agreement with the borrower, change the terms of installments, combine two or more installments into one installment, or pay installments and interest on installments before the specified date. (7) Other arrangements related to foreign exchange shall be as prescribed.