Section 6: Public sector debt

6. Public sector debt (1) Any debt incurred— (a) through the raising of loans, issuing of securities, overdrafts or by any other means by— (i) the central government; (ii) the Rodrigues Regional Assembly established under section 51 (c) of the Rodrigues Regional Assembly Act; (iii) the local government; (iv) a public enterprise, whether or not the loans are wholly or partly guaranteed by Government; (b) by way of advances from the Bank to any entity in the public sector, shall constitute public sector debt. (2) Any debt incurred by the general government or a public enterprise, and which is wholly or partly guaranteed by Government, shall constitute a debt due by the State and carry an absolute and unconditional commitment by Government to the timely payment of the principal of the debt, and the interest on it, in accordance with the terms and conditions under which the indebtedness was contracted. (3) Provision for the payment of the principal of, and interest on, public sector debt in accordance with the terms and conditions of the debt shall be made in the annual budget of the general government or public enterprise, as the case may be. (4) Notwithstanding any other enactment, all Government debt, regardless of its nature or the date it was incurred shall— (a) have equality of status in relation to claims in respect of payment of the principal and interest; and (b) constitute a first claim against the account into which the funds are deposited. (5) No claims referred to in subsection (4) shall be subordinated to any other claim, except for obligations made in the name of the State and ratified by the National Assembly under appropriate treaties or conventions.