Weekly Economic Update (24th December 2021–30th December 2021)

1. National Cooperative Bank Limited (NCBL) has set up a liquidity management fund worth NPR 2 billion, citing to help those cooperatives facing the problem of liquidity crunch. [1]
2. Nepal Investment Bank Limited (NIBL) has scheduled its special annual general meeting (AGM) for January 18 to expedite its plan to merge with Himalayan Bank Limited (HBL). The banks agreed to name the merged entity as ‘Himalayan and Nepal Investment Bank Limited. [2]
3. Nepal Rastra Bank (NRB) has sought to limit the working capital loan, citing mainly the loans on import amid worsening liquidity crunch and ballooning imports. [3]
4. Import of coffee has increased by 114 percent, while the export of coffee has decreased 87 percent in the last five fiscal years.During the fiscal year, 2019/20, coffee worth NPR 118.8 million was imported in the country. [4]
5. NMB Bank Limited has secured a USD 12 million debt investment deal with the Swiss Investment Fund for Emerging Markets (SIFEM), anticipated to help NMB Bank in acquiring diversified fund sources to bolster its unique brand of sustainable banking. [5]
6. Fifteen executives of Bottlers Nepal have been accused of evading capital gains tax while transferring the promoters’ shares of foreign stakeholder about six years ago. [6]
7. A total of 42 local governments have failed to submit the records of their financial settlement of 2020/21 even after six months of the following fiscal year. Most of the local governments breaching the state’s law are from Jhapa, Rautahat and Humla districts. [7]
8. Commercial banks have announced providing dividends of up to 38 percent to their shareholders. 21 banks have announced to provide dividends in double digit percentages. [8]
9. Nepal imported mobile phone sets worth NPR 22.97 billion in the first five months of the current fiscal year, which was 10.37 percent more than the imports during the same period in the last fiscal year. [9]
10. The Department of Customs (DoC) has seized around 500 bottles of alcohol from travelers at the Tribhuvan International Airport in the first five months of the current fiscal year. DoC is preparing to put them up for auction. [10]

[1] https://myrepublica.nagariknetwork.com/news/ncbl-sets-up-liquidity-management-fund-of-rs-2-billion-to-help-cooperatives-facing-liquidity-shortage/

[2] https://myrepublica.nagariknetwork.com/news/after-hbl-nibl-calls-agm-to-endorse-merger-of-two-banks/

[3] https://myrepublica.nagariknetwork.com/news/nrb-mulls-to-tighten-on-working-capital-loans-to-be-issued-for-firms/

[4] https://myrepublica.nagariknetwork.com/news/import-of-coffee-increased-while-export-decreased-in-the-last-five-fiscal-years/

[5] https://myrepublica.nagariknetwork.com/news/nmb-bank-secures-first-sifem-investment-of-usd-12-million-in-nepal/

[6] https://myrepublica.nagariknetwork.com/news/dri-investigation-concludes-that-coca-cola-evaded-capital-gain-tax-recommends-action-against-15-executives/

[7] https://myrepublica.nagariknetwork.com/news/42-local-govts-yet-to-submit-their-financial-transaction-reports-for-fy-2020-21/

[8] https://myrepublica.nagariknetwork.com/news/commercial-banks-providing-dividends-up-to-38-percent-to-shareholders-from-profits-of-last-fy/

[9] https://myrepublica.nagariknetwork.com/news/imports-of-mobile-phone-sets-increased-more-than-10-percent-to-rs-22-97-billion-during-mid-july-and-mid-december/

[10] https://myrepublica.nagariknetwork.com/news/doc-to-auction-500-alcohol-bottles-seized-from-air-travelers-during-mid-july-and-mid-december/