Procedures for Procuring Foreign Loans and Grants

The Government has issued RegulationNo. 2 of 2006(the “Regulation”) to facilitate the implementation of Article 38(4) ofLaw No. 1 of 2004on the State Treasury. This is not the first Government Regulation to deal with grants or loans from foreign and / or domestic sources (see ILB 29/12/2005). This Regulation is not without controversy and despite being in force as of 30 January 2006 there have been statements from the House of Representatives (DPR) that this Regulation either needs to be amended or be prepared to face the prospect of some type of judicial review.