2Interest on advances
(1)In section 12 of the [1978 c. 2.] Commonwealth Development Corporation Act 1978 (repayment of, and interest on, advances and sums issued to meet guarantees), in subsection (1) after the words “Subject to” there shall be inserted “subsection (3A) and”.
(2)After subsection (3) of that section there shall be inserted the following subsection—
“(3A)Nothing in this section shall be taken to prevent the Secretary of State, if he has the approval of the Treasury, from making interest-free advances to the Corporation under section 10(1) above.”
(3)For section 13 of that Act (power of Secretary of State to remit certain debts of the Corporation) there shall be substituted—
“13Power to remit interest on advances
The Secretary of State may, with the consent of the Treasury, remit the payment by the Corporation under section 12(1) above of interest on the whole or any part of the amount outstanding in respect of an advance under section 10(1) above, being interest for such period (beginning after the commencement of the Commonwealth Development Corporation Act 1995) as he may with the consent of the Treasury determine.”