Two Nepalese banks puts a Chinese Bank on 35 days ultimatum

Bank of Kathmandu (BOK) and Himalayan Bank Limited (HBL) has issued ultimatum to Henan branch of China Construction Bank Corporation (CCBC) for payment of under counter guarantee within 35 days. Both banks have jointly published a notice to blacklist the corporation as per the law if the company fails to repay amount of Rs 1.5 arba within 35 days. Earlier, Appellate court of Patan has ordered both banks to pay the amount to Melamchi Water Supply Development Board. The Nepal Rastra Bank drew money from both banks as counter guarantee. Both banks have notified CCBC to pay the amount emphasizing the increased responsibility to pay the Melamchi board has put negative impact on their dividend plan from the last fiscal year. The notice has put forth ‘provisioning’ in the absence of payment from Chinese Bank. As per Ashok Samsher Rana, CEO of Himalayan Bank, ‘We have requested CCBC for the payment. ‘We will notify proper authority to enlist the company in black list in delay of repayment by CCBC. As CCBC has tried to be a strategic partner of Krishi Bikas Bank the government assistance could ease to collect the money. BOK and HBL has stayed in counter guarantee of China Railway 15 Buro Corporation, a company which took a contract to dig tunnel of Melamchi .The contract was dismissed after conflict aroused between the Melamchi committee and the railway. Both banks approached to Arjun Kumar Karki, Secretary of Urban Development Ministry on Monday to collect the money from CCBC. The banks faced failure in the case in a local Chinese court. The banks have asked for reasons for the dismissal of the contract from China railway. At present, Melamchi Water Supply Development Board has handed the task to an Italian company - CMC Cooperative Muratorie Cementisti and an Indian company- Di Ravenna.