KATHMANDU: Economic Digest, a daily morning email digest, is basically a relatable summation of important business news from Nepal into easy-to-understand summaries.
NRB to tighten restriction on lending for senior management officials
Nepal Rastra Bank (NRB) has decided to tighten loans that bank and financial institutions (BFIs) floated to their senior staff.
In its amendment to the Unified Directives to BFIs, the NRB has introduced a new provision that will now bar BFIs to lend their officials at the senior management level except for some consumer loans.
The central bank’s new measure to tighten loans to the senior employees is aimed at curbing disbursement of loans to the senior staff.
According to the provision, officials at the senior management will not be allowed to borrow loans in their names except for some consumer loans.
The central bank has defined the senior management officials as those who are up to two ranks below the chief executive officer of the respective bank.
However, these senior officials of the bank will not be restricted from acquiring consumer loans like education loans, hire purchase loans, home loans and other loans for household purposes.
Nepal ranks 109th in ‘Economic Freedom of the World’
Nepal ranks 109th among 162 countries in the ‘Economic Freedom of the World: 2020 Annual Report’.
The report released on Thursday by Samriddhi Foundation and Canada’s Fraser Institute says Nepal ascended one notch up to the position from last year’s ranking of 110th.
Nepal stood at the 109th position in the global ranking with an overall score of 6.48.
According to the report, a higher value indicates a higher level of economic freedom on a scale of 1 to 10.
Nepal had, last year, scored 6.49.
In 2018, Nepal had ranked 102nd with a score of 6.53.
Meanwhile, Hong Kong (first) and Singapore (second) have topped the index. Similarly, New Zealand, Switzerland, the United States, Australia, Mauritius, Georgia, Canada and Ireland are in the list of top 10, the report said.
Government decides to allow additional international flights
The government has decided to allow airlines companies to add the number of international flights to Nepal.
The decision to this effect was made at a meeting held among Deputy Prime Minister Ishwor Pokhrel, Foreign Minister Pradeep Gyawali, Tourism Minister Yogesh Bhattarai and Labor Minister Rameswor Raya Yadav on Thursday.
With this, as many as 3,000 Nepalis stranded abroad can come to Nepal on a daily basis, Tourism Minister Bhattarai said.
The government made the decision as thousands of Nepali stranded abroad have complained that they were facing problems to get seat to return to Nepal due to the limited number of international flights.
Nepal Airlines plans to buy 5 aircraft for domestic flights
Officials involved in the planning and discussion have concluded that five aircraft should be procured for the time being.
After Nepal Airlines decided not to fly the planes brought from China, currently only three planes are left for domestic flights.
Airlines officials have been saying that they are too old to fly commercially.
Despite the technical opinion that five aircraft should be procured, the Ministry of Culture, Tourism and Civil Aviation has been saying that the aircraft flying in remote areas should be procured immediately and the ships flying on trunk routes should be procured in the second phase.
It is estimated that it will cost at least Rs 9 billion to buy all these ships. Nepal Airlines does not have the capacity to buy its own aircraft.
It requires loan. However, the NAC cannot buy an aircraft without a guarantee from the Government of Nepal.
India willing to prepare DPR of Kathmandu-Raxaul railway
India is willing to start work on the Detailed Project Report (DPR) of the Kathmandu-Raxaul Railway.
India has shown willingness to move ahead with the work of DPR of the railway in a letter written to Nepal. The Railway Department has requested to send details to India in a formal format on how to proceed a work.
India is ready to allow them to come and work in Nepal after sending various details including the names of those who come in formal format.
India has already allocated the required budget for the DPR of the railway, said an official of the Railway Department. The said projet is an opportunity to take Nepal’s development to heights.
Driving license renewal service resumes from Sunday
The Department of Transport Management Office is resuming renewal of driving license from Sunday.
The Transportation Management Office, Ekantakuna, issued a notice on Thursday stating that driving license renewal service will resume from Sunday which has been postponed for three months due to the lockdown.
Similarly, the Department said that other services except for renewal will be suspended until further notice.
(Compiled and prepared by Nitish Lal Shrestha)
Nepal Economic Digest is a daily morning email digest, basically relatable summations of the most important business news, happenings from Nepal into easy-to-understand summaries.
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