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China to investment in infrastructural development bank

By Our Reporter
The government has approved a proposal to form an infrastructure development bank under Chinese investment.
A cabinet meeting recently had agreed in principle to form such a mega bank under Chinese investment, which will have paid-up capital of Rs 100 billion.
Following the Cabinet’s decision, the Ministry of Finance is preparing to hold bilateral discussions with China to set up the bank as soon as possible.
The Chinese-investment bank needs to have at least 20 per cent domestic share. The officials at the Finance Ministry are now discussing the possible modality of investment from Nepal’s side.
As lack of infrastructure financing has been a major bottleneck for the country’s development process, establishment of such infrastructure-dedicated banks will assure necessary resources for mega-infrastructure projects.
In August last year, Nepal Rastra Bank (NRB) had brought ‘Licensing Policy for Infrastructure Development Bank 2017’ opening license for Nepal Investment Development Bank (NIDB), which will have paid-up capital of Rs 20 billion.
As per the central bank’s mandate, different domestic promoters of NIDB have already deposited 45 per cent of the paid-up capital of the proposed bank.
Likewise, MoF officials informed that Indian investors have also expressed interest to set up an infrastructure development bank in Nepal.

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