The Ministry of Finance has made public a draft of the proposed Public Debt Management Bill, 2083, and is seeking suggestions from concerned bodies and the general public.
The ministry has requested that suggestions be submitted within the timeframe specified in the public notice, and has stated that the bill will be finalized after incorporating the necessary suggestions.
Key Provisions
The draft bill proposes to clarify the role of the Public Debt Management Office, provide a legal basis for the government’s investment in shares and loans, and allow for the issuance of government bonds in both domestic and foreign markets.
Additionally, the draft bill includes provisions for the issuance of foreign currency bonds, the maintenance of digital records of government bonds, the issuance of ‘thematic bonds’, and the use of ‘hedging’ to minimize exchange rate and interest rate risks.
Investment Guidelines
The proposed amendments also clarify the areas and bodies in which the government can invest in shares and loans, and those in which it cannot.
According to the proposal, the government can invest in fully or majority-owned public institutions, public-private partnership (PPP) projects of national priority, and international organizations of which Nepal is a member.
However, the proposal prohibits direct investment in individuals, the production and sale of liquor and tobacco products, casinos and gambling houses, and foreign employment businesses.
Regulatory Measures
The draft bill also proposes to regulate the government’s debt collection process, impose penalties on individuals and institutions that provide false information in the bond bidding process, and make some bond-related procedures electronic.
Replies
No replies yet. Log in to be the first to reply!