(1) 4 The Government of Nepal may from time to time borrow loan in foreign currency to be set as per the prevailing exchange rate in an
amount not exceeding a total of three hundred thousand million rupees as per necessity, from any foreign government or agency for any approved development
plan.
Explanation: Only the amount due and payable by the Government of Nepal, out of the amount as referred to in the loan agreement concluded with a
foreign government or agency shall be considered as a loan.
(2) The amount of principal and interest of a loan borrowed pursuant to sub-section (1) shall be chargeable on the consolidated fund or other government
fund, and the period of repayment of the principal or interest of such a loan shall be as specified in the agreement concluded with the lending foreign government or
agency.