Government to help open liaison office abroad: PM

The government will help domestic banks open their liaison office abroad as it will help them bring in the remittance through formal channel.
However, the banks should provide loans to productive sector from the remittance inflow, said caretaker Prime Minister Dr Baburam Bhattarai inaugurating Global IME Bank here today.
The remittance inflow into the country has been encouraging but it has to be utlised in the productive sector, he said, adding that the merger among the banks and financial institutions will help provide enough capital at the transition period, when the country is moving towards capitalist industrial economy from the traditional agriculture.
Without economic development and prosperity, the democracy cannot sustain for a long time, the caretaker premier said. "And development is not possible without private sector. Similarly, without investment infrastructure development is not possible."
However, current trend of politics on poor people will be short lived and instead the political parties must do politics based on development, he suggested.
"The increased number of banks and financial institutions in a small economy like Nepal has channeled investment towards unproductive sectors due to rising and unhealthy competition," said caretaker finance minister Barshaman Pun.
The more the number of banks and financial institutions, the harder it is for the regulator to regulate them," he said, adding that the banks and financial institutions have also urban-centric due to pressure.
Merger is also key to generate big capital base and invest on big infrastructure projects, said central bank governor Dr Yubraj Khatiwada on the occasion.
"To solve the current problem of assets-liability mis-match that has hit the banks and financial institutions lately, the government has asked the multilateral donors to float local current bonds, he informed, adding that it will help banks and financial institutions to invest on long-term infrastructure projects.

Global IME Bank operational
KATHMANDU: Global Bank, IME Financial Institution and Lord Buddha Finance merged to become the Global IME Bank that started its operation from Monday. "Global IME Bank Ltd has become the biggest merger in banking history by completing merger process within short span of time," according to the banks chairman Chandra Prasad Dhakal. Global IME Bank has 62 branches, two extension counters and 57 ATMs network throughout the country, he said, adding that it is the seventh bank in Nepal to issue Visa Credit Card. After the merger, Global IME Bank has made its presence in 13 zones of Nepal and is confident to extend its service network through the country, Dhakal added. "It has a total paid up capital of Rs 2.18 billion with a deposit base of Rs 26 billion, loans worth Rs 20 billion and more than 255,000 customers.

 

Former king’s move will help political parties forge consensus: PM

The current 'move' of the former king Ganendra Shah will help forge consensus among the political parties despite their differences, according to the caretaker Prime Minister Dr Baburam Bhattarai.
Thanking the former king for his coup on February 14, 2005 that helped forge the consensus among the political parties, the premier inaugurating the Global IME Bank here today said that the the former king should understand that his such move will only help political parties to reunite like in 2005.
Bhattarai also warned former king of stripping all the state facilities. "The political parties will have to rethink on his state facilities, if he tries to act smart," he said, adding that as the head of the government, he will take the lead to do so.
"The resurrection of monarchy is impossible as the wheels of time could not be turned back," Bhattarai said.
The former king had in his televised interview yesterday questioned the ability of the political parties in delivering the public what they had promised.
"We might have failed to deliver but there is no difference among the political parties that the country should remain republic and any act against it will not be tolerable," according to the caretaker prime minister, who has declared election on November 22, due to May 27 death of Constituent Assembly that failed to promulgate Constitution even after four years.
The former king had in the interview floated the idea of comeback as a guardian. "It seems former king has not yet learnt lesson,” he said.