Date issued: 19 February 2009

Article 1

These Regulations are adopted pursuant to Article 3, Paragraph 1 of the Central Government Development Bonds and Loans Act.

Article 2

The early repayment or reissuance and exchange of central government development bonds (hereinafter, "the Bonds") shall be managed by the Central Bank.

Article 3

1  After the Bonds have reached 1 year from the date of issue, they may be repaid early in part or in full, in which event they furthermore will be repurchased by means of competitive bidding.

2  After the Bonds have reached 1 year from the date of issue, new bonds may be reissued and exchanged for the original bonds, which will be done by means of competitive bidding.

3  When the Bonds are to be repurchased or exchanged, the minimum bid is to be set by the Ministry of Finance.

Article 4

For repurchase or exchange of the Bonds, matters such as bidding operations and bidder qualifications will be prescribed by the Central Bank in consultation with the Ministry of Finance.

Article 5

Before repurchase or exchange of the Bonds, the Ministry of Finance will give public notice of the following matters, and publish them in the government gazette:

1. The total amount, form, series/issue code, and repayment term of the Bonds to be repurchased or exchanged.

2. Bidder qualifications, minimum and maximum bid amounts, and bidding units.

3. Bidding method, place, and starting and ending times, and the place, date, and time for tender opening.

4. Method for payment or receipt of payment by winning bidders and method for the return or exchange of the Bonds.

5. Other relevant matters.

Article 6

The repurchase or exchange of Type B government bonds shall be handled by the Ministry of Finance at the request of the competent government authorities in charge of various infrastructure developments.

Article 7

1  The principal and interest payments in connection with the repurchase or exchange of Type A government bonds, premiums on the repurchase or exchange, and other relevant expenses are to be paid under budgets as allocated by the Ministry of Finance.

2  The principal and interest payments in connection with the repurchase or exchange of Type B government bonds, premiums on the repurchase or exchange, and other relevant expenses are to be paid by allocations made under the budgets of special funds set up by subordinate units of the competent government authorities in charge of various infrastructure developments.

3  The principal and interest payments, premiums on repurchase or exchange, and other relevant expenses as required under the preceding two paragraphs shall be forecasted and allocated by the Ministry of Finance or the designated special funds, respectively, and transferred in advance to the Central Bank segregated account to be held on deposit in preparation for payment.

Article 8

These Regulations shall be enforced from the date of issuance.