Friday, March 19, 2010

Cabinet appoints Dr Khatiwada as central bank governor and Mallick as PAF vice chairman

The cabinet on Friday appointed Dr Yubaraj Khatiwada as the governor of the central bank and Bidhyadhar Mallick as vice chairman of Poverty Alleviation Fund (PAF).
Khatiwada will be the 15th governor of Nepal Rastra Bank that has remained without a governor for almost two months, after former governor Vijaya Nath Bhattarai’s retirement on January 31.
In absence of governor, the central bank has not been able to publish mid-term analysis of the Monetary Policy — that needs a serious relook.
The central bank remained without a head as there was a serious rift among the ruling political parties on the appointment.
The current vice-chairman at the National Planning Commission, Khatiwada will have a challenge to contend with depleting forex reserves, negative balance of payment, rising inflation and exposure of the financial institutions to riskier sectors as the governor.
However, his long experience at the central bank will help him face the challenges. He has retired as an executive director from the central bank only a year ago.
The government had formed a committee headed by finance minister Surendra Pandey -- with former secretary Dr Bhola Chalise and Govind Bahadur Thapa -- to recommend the names for governor’s post, according to the Nepal Rastra Bank Act. The committee had recommended Dr Khatiwada, the vice-chairman of the National Planning commission, finance secretary Rameshwor Khanal and deputy governor Bir Bikram Rayamajhi.
Khatiwada began his career in Nepal Rastra Bank in 1983. He has also worked as an economic adviser and was a member of the NPC.
Khatiwada -- the PhD holder in monetary economics from Delhi University in 1991 -- was born in Taplejung on August 13, 1956. He did his masters in economics in 1981 and masters in public administration in 1984.
Kahatiwada, who started carier in Nepal Rastra Bank in 1983, has also worked as an economic adviser and was a member of the NPC. He is also guest lecturer of Tribhuwan University, Purbanchal University and Kathmandu University.
He has worked on improvement of poor industries, privatisation of public enterprises and fiscal reform committees. President for the two terms of Nepal Management Association (MAN) Khatiwada has also worked in Mongolia, Bhutan, Afghanistan, Laos, Sri-lanka, Bangladesh and Bhanuatu as a senior economist of UNDP.

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