ADB positive on issuing local currency bond

KATHMANDU, SEP 29: 

Central bank governor held discussions with a delegation from Asian Development Bank on issuing local currency denominated bonds.

A delegation headed by Asian Development Bank (ADB)’s director general Juan Miranda discussed different economic issues including ADB’s plan to issue bonds in Nepali currency to finance long-term infrastructure projects with central bank governor Dr Yubaraj Khatiwada.

“We held discussions on conditionalities, convergence of US dollar into rupee, and other technical issues regarding local currency bond issue,” he said. “However, another ADB delegation in a month will take some concrete decisions on it.” 

Miranda also emphasised that international experience from postal savings banks can be utilised in Nepal to increase banking access to a larger crowd. Similarly, Miranda inquired about the potential sectors that will require ADB’s assistance.

The governor pointed out that ADB’s support can be utilised in areas like financial literacy and accessibility, strengthening capacity to supervise co-operatives along with facilitation of agro marketing.

Khatiwada also informed that the macroeconomic indicators were positive at present. Miranda was on a two-day visit to assess the country’s current state of economy and infrastructure needs, besides Melamchi Water Supply Project that has become ADB’S ‘prestige project’.

Source: THT