Ministry of Finance Seeks Suggestions on Public Debt Management Bill Draft

Kathmandu. The Ministry of Finance has sought suggestions from stakeholders and the general public on the draft bill prepared to amend the Public Debt Management Act, 2079 BS.

The Ministry, through a public notice, has made the draft public and urged for suggestions to be submitted within the stipulated time. The Ministry has stated that the bill will be finalized by incorporating the received suggestions as needed.

The draft proposes to clarify the role of the Public Debt Management Office, provide a legal basis for the government's share and loan investments, enable the issuance of government bonds in domestic and foreign markets, and allow for the issuance of bonds in foreign currency.

Furthermore, it proposes to maintain digital records of government bonds, issue 'thematic bonds', and arrange for 'hedging' to mitigate exchange rate and interest rate risks.

The bill also clarifies which sectors and entities the Government of Nepal can invest in shares and loans, and which sectors it cannot. Accordingly, it is proposed that investments can be made in public entities with full or controlling ownership, national priority projects under public-private partnership, and intergovernmental international bodies of which Nepal is a member.

Similarly, it is proposed that direct loan investments to individuals, production and sale of alcoholic and tobacco products, casinos and gambling houses, and foreign employment businesses should not be invested in by the government.

The draft also includes proposals to systematize the government debt recovery process, penalize and fine individuals or institutions involved in collusion or submitting erroneous details in the bond bidding process, and make some provisions related to bonds based on an electronic system.