Section 10: Capital

10. Capital (1) Subject to subsection (2), the stated capital of the Bank shall be one billion rupees. (2) The Minister may, upon the recommendation of the Board, increase from time to time the amount paid as capital of the Bank by transfer from the General Reserve Fund. (3) The amounts paid as capital shall— (a) be not less than one billion rupees; (b) be subscribed and held solely by the Government; and (c) not be transferable or subject to any encumbrance. (4) The amount paid as capital of the Bank may be increased from time to time by transfer from the General Reserve Fund referred to in section 11, or the Special Reserve Fund referred to in section 47, of such amounts as the Board may, with the approval of the Minister, resolve. (5) Notwithstanding any other provision of this Act, the Minister shall cause to be transferred in full ownership to the Bank, negotiable interestbearing securities issued from time to time by the Government at market rates for such amount as, in the opinion of the Board, is necessary for the purpose of preserving the amount paid as capital of the Bank from any impairment. (6) The interest on the securities referred to in subsection (5) shall be equal to— (a) the interest that the Government is currently paying on securities of one year maturity; or B2 – 9 [Issue 9] Bank of Mauritius Act (b) where securities of such maturity are not outstanding, the interest on any other form of the Government indebtedness of which the maturity is closest to one year.