Article 13 of the Parliamentary Act on the Faroe Islands National Bank and the Faroe Islands Systemic Risk Advisory Council stipulates that the National Bank administers the country’s loan facilities in accordance with conditions promulgated by the Board of Directors of the National Bank. The country’s loan facilities shall be consistent with market conditions.
If debt is to be increased, the Parliament shall grant permission for said increase. On the other hand, Parliamentary Act No. 116, dated 20 December 1991, on the loan facilities of the National Treasury and the refinancing of National Treasury loans grants standing authority for loans to be restructured for up to one year before they become due and payable.