Chapter 5 Chapter 5 Relations with the Government and International Monetary Institutions
Article (23) Financial Agent of the Government(a) The Central Bank shall be the banker to the Government and shall act as its financial agent. It is the place where the government deposits its funds.(b) The Central Bank may provide the services referred to in the previous paragraph to Government organizations and agencies and other public bodies.(c) As an exception from the provisions of paragraph (a) of this Article, the Government may open and maintain accounts with any commercial bank and utilize the services of such banks under such terms and conditions as shall be agreed upon between the Minister and the Central Bank.(d) The Central Bank shall receive and disburse government funds and shall keep the relevant accounts without collecting any charges or interest for such services. The Central Bank shall not pay any interest on the Bahraini Dinars credit balances of the Government.
Article (24) Administration of National Debt(a) The Central Bank shall, in consultation with the Minister, administer the National Debt through any of the following means:1. Procedures for the issue of Government Debt Instruments.2. Redemption of Government Debt Instruments in accordance with the terms thereof.3. Interest payment procedure for Government Debt Instruments.
Article (25) Loans to Government(a) The Central Bank may advance loans to the government in exceptional circumstances to cover any seasonal or unforeseen deficit in the National Budget or to provide liquidity in emergencies on the following conditions:1. Loans advanced to the government shall be repaid within three months immediately following the end of the fiscal year during which such loans were granted.2. The aggregate of loans shall not exceed 25% of the approved National Budget of the Kingdom for the fiscal year during which such loans were granted.3. Loans shall be made on such terms and conditions as the Board may determine.(b) The Central Bank may, subject to the Minister's approval, grant loans and credit facilities to government agencies or public bodies on the terms and conditions stipulated in the preceding paragraph.
Article (26) Public Debt Instruments Transactions
The Central Bank may buy, sell and deal in government debt instruments offered for public subscription if such instruments are not fully subscribed.
Article (27) Relations with International Financial Institutions
The Central Bank shall be the financial agent, custodian and agency through which all the operations with the international financial institutions, of which the Kingdom is a member, shall be transacted.
Article (28) Tax and Fees Exemption
The Central Bank's capital, property, transactions and profits shall be exempt from all taxes and fees.