The Ministry of Finance has made public the draft of the Public Debt Management Bill, 2079, and has sought suggestions from stakeholders and the general public.
The ministry has requested that suggestions be submitted within the specified time frame, and it will incorporate the necessary suggestions into the bill.
The draft proposes to clarify the role of the Public Debt Management Office, provide a legal basis for the government’s share investments and borrowing, and allow for the issuance of government bonds in domestic and foreign markets.
Additionally, the draft proposes to keep digital records of government bonds, issue ‘thematic bonds’, and make arrangements for ‘hedging’ to minimize exchange rate and interest rate risks.
The bill also clarifies the areas and bodies in which the Government of Nepal can invest in shares and loans, and which areas are not allowed for investment.
According to the draft, the government can invest in public institutions with full or controlling ownership, public-private partnership projects of national priority, and international intergovernmental organizations of which Nepal is a member.
On the other hand, the government is not allowed to invest directly in individuals, the production and sale of alcoholic beverages, casinos, and foreign employment businesses.
The draft also proposes to systematize the government’s debt collection process, take action against individuals or organizations that provide false or misleading information in the bond bidding process, and make some provisions related to bonds based on electronic systems.
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