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Government to Take Rs 86 Billion in Internal Loans

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Government to Take Rs 86 Billion in Internal Loans
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May 13: The government, which was least concerned about taking internal loan in the last ten months of the current fiscal year, has decided to seek Rs 86 billion in internal loan in the fourth quarter of FY 2018/19.

Earlier, the government had set a target of borrowing Rs 172 billion internally in the current fiscal year.

Nara Bahadur Thapa, executive director at the Loan Management Department of Nepal Rastra Bank (NRB), informed New Business Age that the central bank is preparing to take internal loan as directed by the government.

NRB is preparing to collect the amount by issuing Treasury Bills (T bills) and development bonds. This time, the central bank will not use other tools like foreign employment bonds, national saving bonds, citizens saving bonds etc to raise internal loan.

The central bank is scheduled to raise an internal loan of Rs 36 billion from T Bills and Rs 50 billion from development bonds within a month.

Normally, the government takes internal loan after failing to meet the expenses through revenue collection.

 

 

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