प्रधानमन्त्रीको सम्बोधनमा गलत तथ्य र तथ्यांकमा टेकेर उपलब्धिको चर्चा

 प्रधानमन्त्री पुष्पकमल दाहालले सत्ताका दिव्य ३६५ दिनका आफ्ना उपलब्धि सुनाउँदै गर्दा तथ्य तथा तथ्यांकमा खेलबाड गरेका छन् । प्रधानमन्त्रीको सचिवालयको कमजोरी हो वा निर्देशन नै अतिसयोक्तिपूर्ण प्रचार हो, थाहा छैन । तर, प्रधानमन्त्रीले गलत तथ्यांक प्रस्तुत गर्दा उनीप्रतिको र उनको सरकारप्रतिको विश्वासमा झन् कमी आउने स्पष्ट छ ।

प्रधानमन्त्रीले प्रस्तुत गरेका तथ्यंकको फ्याक्टचेक गर्दा दाहालका धरै दाबी मनगडन्ते र भ्रामक पाइयो ।

साधारण सम्बोधनमा त गृहकार्य नगर्ने सरकारले नेपाली नागरिकका चुलिँदा महत्वाकांक्षा र आशा पूरा गर्ला भन्ने कुनै विश्वास नहुनु जायज हो । तथ्यांक तोडमरोड गरेर आफ्नो सफलता देखाउन बाध्य प्रधानमन्त्री दाहालले नेपाललाई निकास दिन नसक्ने पनि एकपटक फेरि स्पष्ट भएको छ ।

कुनै पनि मुलुकमा पटक पटक सत्तामा पुग्ने सौभाग्य थोरै भाग्यमानीले मात्र पाएका छन् । प्रधानमन्त्री दाहालको पनि यो तेस्रो पटकको सत्तारोहणको वार्षिकी हो ।

विश्व बैंकको तथ्यांकअनुसार विश्वको एकतिहाइ गरिब दक्षिण एसियामा छन् । विश्वको एक तिहाइ गरिब बस्ने दक्षिण एसियामा नै यस्ता पटके प्रधानमन्त्री भएको धेरै पाइन्छ । गरिबी र पटके प्रधानमन्त्रीको सम्बन्धको यो जालोबाट मुक्त हुन नेपालमा पनि शीर्षस्थ नेतालाई ससम्मान बिदा गरेर युवाको हातमा सत्ता पुग्नु पर्छ भन्ने मान्यता बढ्नुमा पनि सरकारका कार्यशैली तथा मिथ्यांक जस्ता कारण छन् ।

तर नेपालमा तिनै ब्यक्ति पटक पटक सत्तामा पुग्छन् र नयाँ काम गर्ने वाचा गर्छन् । सरकार आफ्ना गलत कार्यशैलीका कारण बुढो बाँदरले नयाँ ट्रिक सिक्देन भन्ने उखान जस्तै नयाँ नेतृत्व नआइकन नेपालीमा अब कुनै आशाको संचार होला भन्ने आशा छैन भन्ने भाष्य स्थापित गर्दैछ ।

मंगलबार प्रधानमन्त्री दाहालले आफ्नो सत्तारोहणको वर्षदिन पूरा भएको अवसरमा गरेका सार्वजनिक सम्बोधनमा पनि सरकारको सफलता देखाउने भावनात्मक उत्तेजनामा आएर दाहालले भ्रामक तथ्यांक प्रस्तुत गरेका छन् ।

प्रधानमन्त्री दाहालको सम्बोधनका केहि मिथ्यांक

प्रधानमन्त्रीको दाबी १: एक वर्षअघि जम्मा तीन महिनाको आयात धान्‍नसक्‍ने सामर्थ्यसहित दिवालिया बन्ने त्रासमा बाँचेको देशसँग अहिले विदेशी मुद्राको सञ्चिति इतिहासकै उच्च छ। यही असारदेखिको चार महिनाकै अवधिमा यस्तो सञ्चिति १५७ अर्ब रूपैयाँले बढेको छ।

तथ्य: नेपाल राष्ट्र बैंकका अनुसार २०७९ मंसिर मसान्तसम्ममा कुल विदेशी मुद्रा सञ्चिति १२ खर्ब ९२ अर्ब ५६ करोड रुपैयाँ थियो । विदेशी मुद्रा सञ्चितिबाट १० महिनाको वस्तु आयात र ८.७ महिनाको वस्तु तथा सेवा आयात धान्न सक्ने अवस्था थियो ।

तर, यस वर्षको कात्तिक मसान्तसम्ममा विदेशी मुद्रा सञ्चिति १६ खर्ब ९६ अर्ब रुपैयाँ पुगेको राष्ट्र बैंकले जनाएको छ । चालु आर्थिक वर्षको चार महिनाको आयातलाई आधार मान्दा हाल सञ्चित विदेशी मुद्रा १३.६ महिनाको वस्तु आयात र ११.३ महिनाको वस्तु तथा सेवा आयात धान्न सक्ने देखिन्छ ।

यथार्थमा प्रधानमन्त्रीको दाबी भ्रामक ।

प्रधानमन्त्रीको दाबी २: विदेशी मुद्राको सञ्चिति इतिहासकै उच्च ।

तथ्य: राष्ट्र बैंकका अनुसार २०७७ पुसमा विदेशी मुद्राको सञ्चिति १२ अर्ब ७७ करोड ५८ लाख अमेरिकी डलर पुगेको थियो । तर, २०८० कात्तिक मसान्तसम्ममा विदेशी मुद्रा सञ्चिति १२ अर्ब ७५ करोड अमेरिकी डलर छ ।

राष्ट्र बैंकको तथ्यांकअनुसार गत वर्ष (२०७९) वैशाखमा विदेशी मुद्रा सञ्चिती ९ अर्ब २७ करोड अमेरिकी डलरमा झरेको थियो । जसले ६.१८ महिनाको वस्तु र सेवाको आयात धान्न पुग्थ्यो ।

यथार्थमा विदेशी मुद्राको सञ्चिती इतिहासकै उच्च भएको भन्ने प्रधानमन्त्रीको दाबी पनि भ्रामक ।

प्रधानमन्त्रीको दाबी ३: सधैँ घाटामा रहने सार्वजनिक संस्थान नाफामा जान थालेका छन् । नेपाल वायुसेवा निगमको तिर्नुपर्ने दायित्व कम हुँदै गएको छ। नेपाल आयल निगम र नेपाल विद्युत् प्राधिकरण नाफामा गएका छन् ।

तथ्य: सार्वजनिक संस्थानको वार्षिक स्थिति समीक्षा २०८० का अनुसार सरकारको लगानी रहेका विभिन्न सार्वजनिक संस्थानहरुको वित्तीय अवस्थामा अझै सुधार हुन सकेको छैन । आर्थिक वर्ष २०७८-०७९ मा संचालनमा रहेका ४२ वटा संस्थानमध्ये २५ नाफा र १७ वटा संस्थानहरु घाटामा रहेको छन् । त्यसैगरी दुई संस्थाको कारोबार शून्य रहेको छ। उक्त वर्ष जनकपुर चुरोट कारखाना बन्द र विद्युत उत्पादन कम्पनी, राष्ट्रिय प्रसारण ग्रीड कम्पनीको व्यवसाय शुरुवाती अवस्थामा नै रहेको छ ।

नेपाल वायुसेवा निगमलाई ग्राउन्ड हयान्डलिंग गर्न नदिने हो भने घाटामा जान्छ । निगमको प्राथमिक काम भनेको जहाज उडाउनु हो तर निगमले जहाज मात्र उडाउने र ग्राउन्ड हयान्डलिंग गर्न नपाउने हो भने तत्काल आगामी महिनादेखि तलब पनि खान सक्ने सामथ्र्य हुने छैन र जनताले तिरको करबाट सरकारले तलब खुवाउनु पर्दछ । हालेका दिनमा निगमका कर्मचारीको आन्दोलनको चुरो कुरो पनि त्यहि हो ।

पेट्रोलियम पदार्थ नेपालमा उत्पादन तथा प्रसोधन समेत नहुने भएका कारण नेपाल आयल निगमको नाफा वा घाटामा नेपाल सरकारको प्रत्यक्ष कुनै हात हुँदैन । अन्तर्राष्ट्रिय बजारमा भाउ बढे नेपालमा पनि बढ्ने अनि घटे घट्ने भनेर नै नेपालमा स्वचालित मूल्य प्रणाली लागु गरेको निगमको नाफामा प्रधानमन्त्री दाहालले जश लिन खोज्नु राजनीति मात्रै हो ।

सार्वजनिक संस्थानको वार्षिक स्थिति समीक्षा–२०८० अनुसार आर्थिक वर्ष २०७८-७९मा नेपाल विद्युत् प्राधिकरणले आव २०७८-७९ मा १३ अर्ब ३७ करोड खुद नाफा आर्जन गरेको थियो । सरकारकै उक्त प्रतिवेदनका अनुसार सरकारले लगानी गरेका सार्वजनिक संस्थानहरू सरकारलाई बोझ बन्दै गएका छन्। करिब सवा ६ खर्ब लगानी रहेका सार्वजनिक संस्थाले एक वर्षको अवधिमा १ अर्ब ५४ करोड २० लाख रूपैयाँ मात्र खुद नाफा आर्जन गरेका छन्। यो नाफा लगानीका आधारमा निकै कम हो।

साथै, पछिल्लो चार वर्षदेखि संस्थानहरूको नाफा निरन्तर घट्दै गएको छ। आर्थिक वर्ष २०७७-७८ मा २६ अर्ब ३६ करोड ९२ लाख खुद नाफा आर्जन गरेका संस्थानले आव २०७८-७९ मा १ अर्ब ५४ करोड २० लाख रूपैयाँ मात्र खुद नाफा गरेका छन्।

यसरी हेर्दा एक वर्षमै नाफा २४ अर्ब ८२ करोड ७२ लाख रूपैयाँ घटेको छ। अघिल्लो आर्थिक वर्ष भन्दा गत आर्थिक वर्षमा खुद नाफा ९४.१५ प्रतिशतले घटेको छ। आव २०७८-७९ मा सञ्चित नाफा ५२ अर्ब ४० करोड ७८ लाख रूपैयाँ छ।

प्रधानमन्त्रीको दाबी भ्रामक ।

प्रधानमन्त्रीको दाबी ३: ‘लगभग सिंगो देशमा विद्युत पहुँच पुगेको’ छ ।

तथ्य: राष्ट्रिय योजना आयोगको दिगो विकास लक्ष्यको संशोधित सूचक प्रतिवेदनका अनुसार सन् २०२२ मा ८५.७ प्रतिशतको घरमा मात्रै विद्युत् पहुँच पुगेको छ । दिगो विकास लक्ष्यमा सन् २०३० मा मात्रै ९९ प्रतिशतको घरमा विद्युत् पहुँच पुग्ने लक्ष्य समेटिएको छ । दाहाल सरकारले नै जेठ १५ गते ल्याएको आव २०८०-८१को बजेट बक्तव्यमा पनि असार मसान्तसम्ममा ९५ प्रतिशत नागरिकको घरमा राष्ट्रिय विद्युत प्रणालीबाट विद्युतमा पहुँच पुर्याउने अनुमान रहेको थियो ।

प्रधानमन्त्रीको दाबी भ्रामक ।

प्रधानमन्त्रीको दाबी ४: यस वर्ष उपभोक्ता मूल्य वृद्धिदर गत वर्षभन्दा २.७ प्रतिशत बिन्दुले कम भएको छ। … मौद्रिक नीतिमा गरिएका सुधारका कारण बैंकको आधार ब्याजदर एकल अङ्कमा पुगेको छ भने ऋणको ब्याजदर पनि घटेको छ । यसबाट उत्पादन लागत घटेर उपभोक्ता मूल्यमा समेत सकारात्मक प्रभाव पर्ने निश्चित छ ।

तथ्य: बजार भाउको वृद्धिदरमात्र घटेको हो, बजार भाउ सस्तो भएको होइन । त्यसमाथि आयात पनि घटेको, आन्तरिक उत्वादन पनि नबढेको परिबेशमा कसरी के कारणले असोजमा ७.५० रहेको वार्षिक बिन्दुगत आधारमा उपभोक्ता मूल्य सूचकाङ्कमा आधारित मुद्रास्फीति कात्तिकमा ५.३८ प्रतिशतमा झर्यो । साथै, बजारमा उपभोक्ताले किन अनुभुत गर्न पाएनन् ? यसमा सरकार, अर्थ मन्त्रालय र राष्ट्र बैंक जवाफदेही हुन पर्दछ ।

यसका साथै, संसारभर केन्द्रीय बैंकहरुले मूल्यवृद्धि नियन्त्रण गर्ने औजारका रुपमा ब्याजदरलाई प्रयोग गर्ने गर्छन् । अर्थशास्त्रमा ब्याजदर बढाएपछि ऋणको लागत महँगो हुन्छ, त्यसले अर्थतन्त्रमा माग कम हुन्छ र मूल्यवृद्धि नियन्त्रण हुन्छ भन्ने मान्यता छ। नेपालमा पनि गत आर्थिक वर्षमा ब्यामजदर बढाउँदा राष्ट्र बैंकले यहि तर्क दिएको थियो । तर, नेपालमा ब्याजदर बढ्दा पनि तात्विकरुपमा मूल्यवृद्धि घट्न सकेन भने झन् ब्याजदर घटाउँदा कसरी मूल्यवृद्धि दर कम भएको हो, प्रधानमन्त्रीको अर्थशास्त्रले नै बताउला ।

प्रधानमन्त्रीको दाबी शंकास्पद ।

यस बाहेक पनि धेरै तथ्यगत तथा तथ्यांकीय त्रुटीको जगमा गरिएको आफ्नो एक वर्षे कार्यकालको उपलब्धिको वर्णनमा प्रधानमन्त्री दाहालले पुन समीक्षा नै गर्नु पर्ने देखिन्छ ।

Banks not decreasing interest rates

The commercial banks decided that they will not decrease interest rates for next one month due to the current ‘tight’ situation in the financial market and soaring inflation.

Nepal Bankers’ Association’s (NBA) meeting today decided not to raise the interest rates for the next month starting from November 17.

There has been a huge cry from the private sector as the banks hiked the interest rates to contain the but still the interest rate and the inflation doesnot match. The depositors are getting 7 per cent  on their deposits whereas the inflation is above 8.5 per cent. But the private sector is blaming the central bank for supporting the Banks and Financial Institutions (BFIs) ensuring them a huge profits by letting them increase the interest rates. The private sector has also come to street to protest against the interest rates hike, which they have postponed – for the time being – citing the elections to the House of Representatives and provincial assemblies scheduled for November20.

Since mid-September, the banks have increased their interest rates on fixed deposits by 10 percentage points to 12.13 per cent, while the interest rates on savings accounts is only 7.13 per cent per annum on an average. However, the lending rate has gone up to 18 per cent, blame the private sector that funnels the borrowing to imports. But when the bank rates were low also, the inflation was more than the bank deposit rates, hurting not only the savers but also the economy.

However, increasing interest rate failed to create new deposits. But the slowdown in the economy has pushed nonperforming loans (NPL) and the cases of bad debts are also increasing, which are serious concerns. 

Central bank intervenes after banks raise interest rates on savings

 Though its wrong principally to interfere in the free market, the central bank has interfered in the banks and financial institutions asking them to return the interest rate imposed on savings from October 18.

Claiming that the banks have increased the interest rates arbitrarily to attract deposits from other financial institutions Nepal Rastra Bank (NRB) has issued a three-point directive tonight. Most of the banks and financial institutions (BFIs) termed the central bank's move as a 'micromanagement' in the financial market.

According to the free market principle, the central bank cannot interfere in the interest rates of the BFIs. "But some banks have created fake deposits and others have tried to lure the deposits by offering higher interest rate, which is going to hit the economy," a central bank official claimed, adding that the banks have given no space but to intervene in the interest rate due to their cut throat competition to literally 'snatch' deposit. "The central bank wishes the interest rate to remain in the single digit."

But according to the banks, they are facing lonable fund crunch also due to central bank's policy to scrap credit to core capital plus deposit ratio (CCD) and implement credit-deposit ratio (CD) -- through the Monetary Policy 2021-22 -- which means banks can lend Rs 90, only if they have Rs 100 deposit. 

Most of the banks increased interest rates on savings and term deposits with effect from October 18 as is the practise of announcing the interest rate on the monthly basis, under the regulatory compliance. Some banks offered more than 11 per cent interest rates -- on personal and institutional deposits -- which is more than 30 per cent increment from the interest rate a month ago.

According to the directive, banks and financial institutions can change -- upward or downward -- the interest rate of any type of deposit by only 10 per cent of the previous month’s interest rate.

Likewise, the interest rate on institutional term deposits (including bidding) should be at least one per cent lower than the maximum interest rate on term savings to the public, the directives reads, asking the banks and financial Institutions to republish the new interest rate on its website by Wednesday and in national daily newspapers within Friday.

One banker said that the central bank has always been micro-managing the banks and financial institutions, and the current directive is only a step forward.

Central bank relaxes bank loan for first-time home buyers

The central bank prohibits bank and financial institutions (BFIs) from raising the monthly installment even when there is a rise in the interest rates of loans. Likewise, the central bank has also raised the loan to value (LTV) ratio – the maximum amount of loans that a bank can float out of the total valuation of the collateral – to 70 per cent for such first-time home buyers.
Amending the ‘Unified Directives 2075’, the central bank has, however, said that the loan repayment duration could be extended beyond the originally slated period, despite the prohibition to increase monthly installment amount.
The maximum limit of the loan that a buyer can get to purchase a house or apartment under this category has been fixed at Rs 15 million, the ‘Unified Directives 2075’, that is a collection of rules and circulars issued to the BFIs.
“The new provision will offer a respite for the borrowers even in case of interest rate rise,” Nepal Bankers Association said, adding that there will not be an immediate pressure of paying more money in installment.
According to the ‘Unified Directives 2075’, a bank can also provide loan amount up to 70 per cent of the total valuation of the home to the borrower. “The limit for other residential home loans has been capped at 50 per cent inside the Kathmandu Valley and 60 per cent outside the valley,” it reads, adding that the banks and financial institutions (BFIs), however, should make sure that the borrower has not acquired any loan to purchase or construct house or apartment from any bank or financial institution. “The central bank has also fixed certain criteria for loans under this new arrangement,”
The house or apartment, which should be inhabited only by the borrower, should be of maximum 3,000 square feet,” according to the central bank.
“The bank will not consider the rent earning from the house or apartment as the borrower’s income source for the loans floated under this category,” according to the ‘Unified Directives 2075’ that reads, “Apart from the value of the collateral, a bank should take into consideration the regular income of the borrower to ascertain the repayment capacity while floating personal loans.”

Government caps lending rate of cooperatives at 16 per cent

The government has, for the first time, capped the lending rate for cooperatives at 16 per cent as the third piller of the economy – according to the Constitution – has been blamed for overcharging the poor borrowers.
According to the new rule introduced by the Department of Cooperatives (DoC) – that will come into implementation from August 4 – the cooperatives will not be allowed to charge more than 16 per cent interest rates on loans.
Organising a press meet in Kathmandu today, Registrar of Co-operatives Division Dr Tokraj Pandey said that the Department of Cooperatives (DoC) – the regulator of cooperatives – has fixed the upper limit of lending rates for the cooperatives after the decision of the Reference Interest Rate Determination and Recommendation Committee on the basis and principles laid out by the cooperatives regulation. According to the regulation, the committee has to factor in the average interest rates of saving and credit cooperatives affiliated with the federation, average interest rates of cooperative banks, average interest rates of commercial banks, reports of the studies commissioned by the government, suggestions of cooperatives federation and other associations as well as other basis that the committee deems appropriate.
The regulations also states that the reference committee should take into consideration principles including the deposit rates should be higher than the weighted average saving rates and lending rates lower than the weighted average lending rates.
Likewise, the department has also fixed the maximum interest rates spread of a cooperative to 6 per cent, which means the difference between the deposit and loan rates of a cooperative should be below 6 per cent. The new rule has ensured at least 10 per cent interest on deposits for those who put their savings in cooperatives that charge the maximum 16 per cent interest rates on their loans, according to the new rule that has set the reference rates for cooperatives in line with the provision in the ‘Cooperatives Regulation, 2019’ and the ‘Cooperatives Act 2017’.
The Act also entrusts the authority to the registrar of the department to fix the reference interest rates for cooperatives upon the recommendation of a nine-member committee. Such committee led by the registrar includes a representative from the Finance Ministry, Nepal Rastra Bank (NRB), National Cooperative Development Board, National Cooperative Federation of Nepal, and National Cooperative Bank Ltd.
There are a total of 34,512 cooperatives across the country with almost 6.4 million members. “But the new rule will be implied to some 13,578 saving and credit cooperatives with 3.5 million members,” according to the department. Due to lack of effective regulation and monitoring, cooperatives have been charging up to 25 per cent interest on loans but now the department will take action against the cooperatives, which will charge higher than 16 per cent, Pandey said.

Co-ops to be restricted from charging exorbitant interest rates

Cooperatives will now be barred from charging exorbitant interest rates on loans as the government has approved the regulations to the Cooperative Act 2017 that envisage a separate mechanism to fix the interest rate. The Cabinet last Monday approved the regulations one and a half years after the government enacted the Cooperative Act.
The cooperatives have been offering – to attract depositors – higher interest rates and charging the exorbitant interest rates on loans too as there is not restriction on the interest rate being offered by the cooperatives as of now. And also the saving and credit cooperatives in particular, have been out of regulatory radar in the absence of necessary regulations.
The regulations have been introduced to protect customers from being charged with exorbitant interest rates, according to the Department of Cooperatives. "In past years, a number of saving and credit cooperatives have embezzled money belonging to depositors who had been lured by hefty interest rates."
Oriental Cooperative – that landed in trouble – had also offered interest up to 22 per cent per annum to its depositors. It was declared problematic in 2013 after few years in operation. Oriental owes Rs 17 billion to its creditors including depositors, apartment buyers, the government, banks and financial institutions, according to the report of Problematic Cooperatives Asset Management Committee. "Under the regulation, a committee under the department will be formed to fix the reference interest rate based on the prevailing interest rate charged by the banks," the department said, adding that the committee will involve representatives from Land Management, Cooperatives and Poverty Alleviation and Finance ministries, Nepal Rastra Bank (NRB), Cooperative Development Board (CDB), National Cooperative Federation (NCF) and other concerned cooperative associations. "The committee will also assess the liquidity positions of the cooperatives while allowing them to fix the interest rates."

Private sector asks premier's help to lower interest rate

Going against the free market policy, the private sector has today approached the Prime Minister KP Sharma Oli and asked him to pressurise the banks and financial institutions (BFIs) to lower the interest rate.
The team led by Federation of Nepalese Chambers of Commerce and Industry (FNCCI) president Bhawani Rana went to the Prime Minister's official resident Baluwater to ask him to lower the interest rates between 7 per cent and 9 per cent for productive sector. The unpredictable interest rate has hit the industries, the private sector champions said, suggesting the Prime Minister ways to suppress the interest against the free market economy.
The suppressed interest rate is not only against the free market norms, but also creates higher loan demand again making the loanble fund much scarcer. Likewise, the direct approach to the premier – for interest rates complain – is also not going to strengthen the institutions like central bank and Finance Ministry. The central bank, though, is an autonomous regulatory body of the financial market by law, the government – especially the Finance Ministry – has been lately treating it as a department of the ministry. The weak institutions will eventually not help make a strong, independent and sovereign economy. The Oli government has been – during its one year performance – blamed for destroying the institutions and centralising the power to Baluwater, which will further weaken the institutional and structural pillars of the economy.
The move, though, is also going to weaken the governance and push the institutional reforms to backseat, the premier urged the banks not to impose interest rate arbitrarily. But the banks – majority of them – have the private sector as their promoter.
Directing the finance minister Dr Yuba Raj Khatiwada and central bank Governor Dr Chiranjivi Nepal – who were also present during the meeting – to talk to the bankers on entrepreneurs' complaints, the premier also urged the investors to increase investment on productive sectors that can prop up the economy.
The greed of more profits is not good, the communist premier Oli said, adding that it is not good that banks float loan on one condition and impose interest arbitrarily.
Speaking during the Nepal Entrepreneur Summit 2019 on Thursday, finance ministry Khatiwada also said that the profit should be socially accepted, but he did not mentioned how much is socially accepted. The government lately seems to be preparing the ground to put the ceiling in profits – which will be detrimental to the economic growth – and also discourage entrepreneurship.

Stock brokers can float margin lending

The Securities Board of Nepal (Sebon) has allowed stock brokerage firms to provide margin lending. The stock brokerage firms – currently allowed only to execute trading orders placed by their clients in the secondary market – will be able to provide marging lending to their investors to buy shares.
Issuing a circular today the regulator for the capital market – Sebon directed the Nepal Stock Exchange (Nepse) and brokerage firms – paved the way for brokerage firms to provide financing service to purchase stocks for their clients in the secondary market. "The interest rates will however be monitored by the Sebon and Nepse," the circular reads, adding that the brokerage firms will be free to set their interest rates on the margin loan but the interest rates should be mentioned in the contract. "The firms should also pre-inform Nepse and Sebon about the interest rates."
A panel formed by Finance Ministry last month has recommended margin lending by stockbrokers to address problems in the stock market. Margin trading allows investors to buy shares by borrowing money against stock as collateral. Investors need to have a margin account with a brokerage firm – to trade on margin – while the stockbrokers can fix the interest rate on such loans.
According to the Securities Board’s directive issued last year, stockbrokers with a net asset of Rs 50 million can offer margin trading service to investors. "Stockbrokers can issue margin loans amounting up to 50 per cent of the value of the shares based on the 180-day average price or the prevailing market price, whichever is lower," the directives read, adding that a potential investor has to deposit up to 50 per cent of the value of the stock to be purchased while the rest of the money is put up by the stockbroker.
Of the total 50 stockbrokers in the country, all are eligible to provide margin loans, according to the Stockbrokers’ Association of Nepal president Bharat Ranabhat.
It took the capital market regulator a year to finalise working procedure for implementation of the marging lending service also due to complication about who will monitor the interest rates, though the Sebon had first mooted the idea to introduce margin lending service from brokerage firms in November 2017.
Though the Nepse had drafted the working procedure on margin transaction service last May in line with a Sebon directive of November 2017, it could not be issued  due to disagreement between the Sebon and central bank – that is responsible for monitoring interest rates – over the issues of jurisdiction to monitor the interest rates.
Earlier, the central bank had said that the brokerage firms that wanted to provide margin lending service should get permission from the central bank, which is the regulator of financial sector. The Sebon has however informed the new arrangement including the working procedure and its earlier directive to the central bank.
The margin lending facility from brokerage firms will make the investors free from relying on bank and financial institutions (BFIs) for loans to buy stocks in the secondary market.

FNCCI asks central bank to tame rising interest rates

The private sector has asked the central bank to crack whip on soaring interest rates.
Federation of Nepalese Chambers of Commerce and Industry (FNCCI) today – submitted a memorandum to the Nepal Rastra Bank (NRB) governor Dr Chiranjibi Nepal asking him to tame the rising interest rate that has added doing business cost.
The abrupt hike in interest rate has made an adverse impact on industries and enterprises, FNCCI president Bhawani Rana told governor Dr Nepal submitting a memorandum at the latter's office.
A delegation led by Rana called on the central bank governor today to draw his attention on the effects of soaring interest rates on deposits on lending rates.
The hike in lending rates will erode the competitive capacity of domestic industries, increase project costs and discourage entrepreneurs and industrialists to start new projects, the delegation told the central bank governor. "The high rates will make it difficult to increase industrial production and narrow widening trade deficit that are key targets of the fiscal and monetary policy."
FNCCI has also suggested the central bank to address high-interest rates and manage liquidity problems that banks are facing at present. Institutional depositors are blamed for driving interest rates higher by bargaining with banks and financial institutions for better rates. The umbrella organisation of the private sector has suggested that the share of institutional depositors – including Employees Provident Fund, Citizen’s Investment Fund and welfare bodies of security agencies – in total deposits should be reduced to 25 per cent from existing 45 per cent.
The FNCCI has also asked the central bank to lower the difference between lending and deposit rates to 3 per cent from existing 4.5 per cent, bring remittances through formal channel, bring money from informal markets to bank and financial institutions, and increase the government’s capital spending. Likewise, it has suggested central bank to bring auto loan down to 50 per cent and introduce credit rating for any private limited company to make borrowings of Rs 1 billion or above.
The central bank governor Dr Nepal responding to the private sector assured that the central bank will take needful initiative to tame rising interest rates.