Govt to help open liaison office abroad

KATHMANDU, JULY 10: 

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 in the country 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 utilised in the productive sector, the Prime Minister 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 channelled the investment towards unproductive sectors due to rising unhealthy competition between the financial institutions,” 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,” the finance minister said, adding that the banks and financial institutions have also become 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 mismatch that has hit the banks and financial institutions lately, the government has asked the multilateral donors to float local current bonds, the governor informed, adding that it will help banks and financial 

institutions to invest on long-term infrastructure projects in the country.

Global IME Bank starts operation

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 throughout the country, Dhakal added. “It has a total paid up capital of Rs 2.18 billion with a deposit base of of Rs 26 billion, loans worth Rs 20 billion and more than 255,000 customers.”

Source: THT