Section 2
SECTION 2. Under special circumstances where the Monetary Board deems it in the national interest, and notwithstanding the provisions of any existing law to the contrary, the Central Bank may grant loans to the Government or to banking institutions from the proceeds of foreign loans obtained by it subject to such terms and conditions as the Monetary Board may prescribe, for the following and analogous purposes: To lend to banking institutions for relending such funds as may be required to finance approved projects; To finance Government development projects for which financing from official development assistance (ODA) sources cannot be obtained; and To refinance existing foreign obligations obtained at relatively more onerous terms. The Monetary Board shall establish safeguards as it may deem proper to prevent undue inflationary effects of the above-mentioned lending operations and shall issue such rules and regulations as may be necessary to insure a rational and coordinated approach to the international capital markets.