Section 13Sec./Art. 13

Foreign Loans.- The Administration is hereby authorized to contract from time to time loans, credits, and indebtedness repayable in foreign currencies from foreign governments or any international financial institution, or fund sources for use in the development of the district.

The President of the Philippines, by himself, or through the Secretary of Finance, is hereby further authorized to guarantee, on behalf of the Republic of the Philippines, the payment of any loan herein authorized, as well as the performance of any other obligations undertaken by the Administration, pursuant to loan agreements with foreign governments or international financial institutions.

In the negotiation and contracting of any loan, credit, or indebtedness under this section, the provisions of Section 4 of Republic Act No. 4860 and Section 5 of Republic Act No. 6142, as amended, shall apply.

The loans, credits, and indebtedness contracted under this subsection and the payment of the principal, interest and other charges thereon, as well as the importation of machinery, equipment, materials and supplies by the Administration, paid from the proceeds of any loan, credit or indebtedness incurred under this Act shall be exempt from all taxes, fees, imposts, other charges, and restrictions imposed by the Republic of the Philippines, or any of its agencies and political subdivisions.