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Nepal allows foreign companies to borrow short-term advances from abroad for infrastructure projects
Source: Xinhua   2018-07-21 17:46:21

KATHMANDU, July 21 (Xinhua) -- Nepal's central bank has allowed foreign companies involved in Nepal's infrastructure development to receive Short-Term Advances from foreign countries through their parent companies abroad.

The Nepal Rasra Bank (NRB), the central bank of the Himalayan country, said the facility was extended to help them sustain their administrative expenses during the construction of infrastructure projects.

"Foreign investors and foreign contractors can benefit from the new provision," spokesperson of NRB Narayan Paudel told Xinhua on Saturday.

"The short-term advances will help them address their short-term need for working capital and administrative expenses."

Foreign companies are involved in Nepal's big infrastructure projects, such as hydropower, road, airport and drinking water project. Paudel said the facility was provided after receiving a few requests from foreign companies.

In order to receive the short-term advance, a company has to fulfill a number of conditions as per the NRB. The borrowed fund should be interest free and the repayment period of short-term advances should be less than one year.

Likewise, the companies can borrow such money only through their parent companies abroad. "It means, the parent company should secure funding for the company working in Nepal," said Paudel.

The advances should enter Nepal through banking channel only. The borrowing company should submit details including an agreement signed between the borrower and lender, Swift Message and the bank statement within 15 days after the fund enters Nepal.

The concerned infrastructure project should write recommendation letter to the NRB for allowing the foreign company to borrow and repay the amount borrowed, according to the central bank.

Editor: ZX
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Nepal allows foreign companies to borrow short-term advances from abroad for infrastructure projects

Source: Xinhua 2018-07-21 17:46:21
[Editor: huaxia]

KATHMANDU, July 21 (Xinhua) -- Nepal's central bank has allowed foreign companies involved in Nepal's infrastructure development to receive Short-Term Advances from foreign countries through their parent companies abroad.

The Nepal Rasra Bank (NRB), the central bank of the Himalayan country, said the facility was extended to help them sustain their administrative expenses during the construction of infrastructure projects.

"Foreign investors and foreign contractors can benefit from the new provision," spokesperson of NRB Narayan Paudel told Xinhua on Saturday.

"The short-term advances will help them address their short-term need for working capital and administrative expenses."

Foreign companies are involved in Nepal's big infrastructure projects, such as hydropower, road, airport and drinking water project. Paudel said the facility was provided after receiving a few requests from foreign companies.

In order to receive the short-term advance, a company has to fulfill a number of conditions as per the NRB. The borrowed fund should be interest free and the repayment period of short-term advances should be less than one year.

Likewise, the companies can borrow such money only through their parent companies abroad. "It means, the parent company should secure funding for the company working in Nepal," said Paudel.

The advances should enter Nepal through banking channel only. The borrowing company should submit details including an agreement signed between the borrower and lender, Swift Message and the bank statement within 15 days after the fund enters Nepal.

The concerned infrastructure project should write recommendation letter to the NRB for allowing the foreign company to borrow and repay the amount borrowed, according to the central bank.

[Editor: huaxia]
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