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NRB allows foreign companies to receive short-term advances for infra projects

Jul 22 2018 | 01:18 pm

Kathmandu: Nepal Rastra Bank (NRB), the country’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 Rastra Bank (NRB) said the facility was extended to help them sustain their administrative expenses during the construction of infrastructure projects.

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.

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.

Panipokhari

Kathmandu, Nepal

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