KATHMANDU, Jan 28: The government has raised Rs 10 billion in domestic debt as per the target set in the current fiscal year. Nepal Rastra Bank (NRB) raises domestic debt on behalf of the government.
According to NRB Spokesperson Gunakar Bhatta, the target is to borrow Rs 56 billion within the second quarter of the current fiscal year. Earlier, the government had raised Rs 57 billion in domestic debt in the first four months.
“The domestic debt has been raised as per the target set for the second quarter,” Bhatta said. “We will also raise the remaining domestic debt soon as per the provisions made in the budget.”
Public debt exceeds Rs 2.434 trillion, increasing by over Rs 30...
The NRB raised Rs 10 billion from 17 banks and financial institutions. Of them, seven are commercial, five are development banks and five others are finance companies, according to NRB.
Muktinath Development Bank has bought most of the bonds issued by NRB. The bank has bought bonds worth Rs 3 billion. Rastriya Banijya Bank has bought bonds worth Rs 1 billion, Agricultural Development Bank Rs 800 million and Civil and Prime Bank each have bought bonds worth Rs 750 million. Investment and Citizens Bank have purchased bonds worth Rs 500 million each. Similarly, Everest Bank has bought bonds worth Rs 388 million and NCC Bank has bought bonds worth Rs 100 million.
Under the Development category, Kamana, Jyoti Bikash, Tinau and Narayani Finance have purchased the bonds named 'Development Bonds'. Kamana has bought bonds worth Rs 750 million, Jyoti Rs 588 million, Tinau Rs 120 million and Narayani Development Bank Rs 4 million. Similarly, United Finance has purchased bonds worth Rs 300 million, Progressive Finance Rs 200 million, Central Finance Rs 150 million and Reliance Finance Rs 100 million.
The government has agreed to pay an annual interest of 3.88 percent on domestic loans raised for the period of seven years. NRB had issued 'Development Debenture' on January 26 to raise Rs 10 billion in domestic debt. Fifty banks and financial institutions and insurance companies had competed to buy the bond.
The companies had offered a loan of Rs 71.28 billion to the government. Bhatta informed that the competitors offering the lowest interest rate have been approved. The bonds raised now will mature on January 27, 2028. The government has set a target of raising Rs 225 billion in domestic debt in the current fiscal year. Last fiscal year, the bank raised domestic debt of Rs 191 billion.
