The MoCS has forwarded the decision to the Ministry of Finance requesting it to make necessary arrangements.[break]
“The MoCS recently made ministerial-level decision to waive NOC´s outstanding loan worth Rs 12 billion. We have forwarded the decision to the MoF seeking its consent,” Deepak Subedi, joint secretary at the MoCS, told Republica on Saturday.
Finance Minister Shankar Koirala, who is also the Minister for Commerce and Supplies, had decided to waive the loan owed by NOC to the government.
Out of the total outstanding credit of around Rs 28 billion, NOC owes around Rs 12 billion to the government and the remaining of around Rs 16 billion to Employees´ Provident Fund, Citizens Investment Trust and Rastriya Banijya Bank.
The MoF had earlier rejected an NOC proposal to convert the government´s loan investment in the state-owned company into equities.
Lack of a proper system to adjust prices of petroleum products in line with international price fluctuation, mismanagement and frequent cases of irregularities have propelled NOC to accumulate a cumulative loss of Rs 26 billion so far.
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