Weekly Economic Updates (27 September 2024–03 October 2024)
3 min readOct 4, 2024
- Banks’ Base Interest Rate Drops to 6.03 Percent
Nepal’s commercial banks have reduced their base interest rate from 7.92% to 7.69% for mid-September to mid-October, citing excess loanable funds. The rate dropped by 0.22 percentage points compared to the previous month.(Source:https://myrepublica.nagariknetwork.com/news/banks-base-interest-rate-comes-down-to-as-low-as-6-03-percent/) - Standard Chartered and Chhimek Microfinance Partner in ADB’s Microfinance Program
Standard Chartered Bank Nepal and Chhimek Microfinance have partnered to implement the Asian Development Bank’s microfinance program, expanding financial access in Nepal. This first-of-its-kind collaboration shares loan risk and promotes innovation in the country.(Source: https://www.setopati.com/kinmel/banking/340719) - Koshi Province to Host Investment Summit in January
Koshi Province will host its first investment summit from January 24–26 2025, with a NPR 300 million budget. The event aims to attract investors, promote the province as an industrial hub, and emphasize Public-Private Partnerships (PPP).(Source:https://myrepublica.nagariknetwork.com/news/koshi-province-to-host-investment-summit-in-january/) - Citizen and Foreign Employment Savings Bonds Now Tradable Like Shares
The Public Debt Management Office has released the Internal Debt (Issue and Management) Procedure, 2081, allowing Citizen Savings Bonds and Foreign Employment Savings Bonds to be traded in the secondary market, similar to stock trading in the capital market.(Source:https://myrepublica.nagariknetwork.com/news/citizen-and-foreign-employment-savings-bonds-now-tradable-like-shares-in-secondary-market/) - Heavy Rains Inflict an Estimated NPR 17 Billion Loss on Nepal
Continuous 48-hour rainfall triggered floods and landslides, causing an estimated NPR 17 billion in economic losses, though economists suggest the figure could be three times higher. The agriculture sector was the hardest hit, suffering major damages.(Source:https://kathmandupost.com/national/2024/10/01/heavy-rains-inflict-rs17-billion-loss-on-nepal) - Disasters from Unregulated Structures Lead to Major Damage
Severe flooding in Kathmandu Valley, triggered by heavy rainfall, is attributed to unregulated construction, deforestation, and inadequate state preparedness. Damage estimates reach 100 billion rupees, with significant impacts on hydropower projects and infrastructure.(Source:https://english.ratopati.com/story/35107) - Flood Affects 1,100 MW from 20 Hydropower Plants
Over 20 hydropower plants in Nepal were damaged by floods and landslides, disrupting power supply. The Nepal Electricity Authority, previously exporting electricity to India, now imports power to meet domestic demand due to the damage.(Source:https://myrepublica.nagariknetwork.com/news/over-1-100-mw-of-electricity-production-from-at-least-20-hydropower-plants-affected-by-the-two-day-disaster/) - NRNA Announces Assistance of NPR 10 Million for Disaster-hit People
The Non-Resident Nepali Association (NRNA) will provide Rs 10 million to support Nepalis affected by floods, landslides, and inundation. NRNA President Dr. Badri KC announced the aid after a virtual meeting on Sunday.
(Source:https://myrepublica.nagariknetwork.com/news/nrna-announces-assistance-of-rs-10-million-for-disaster-hit-people/) - Insurers Urged to Prioritize Settling Disaster-Related Claims
The Nepal Insurance Authority (NIA) has urged insurers to quickly address claims for damages from recent floods and landslides. The authority instructed insurance companies to gather information on human and property damages caused by the heavy rainfall.(Source:https://myrepublica.nagariknetwork.com/news/insurers-asked-to-settle-insurance-claims-related-to-disaster-related-damages-with-priority/) - The Prices of Vegetables and Fruits are Arbitrary due to the Calamity
Vegetable and fruit prices have risen sharply, with retailers increasing prices more than wholesalers, citing recent floods. Officials, including the National Consumer Forum, have labeled this exploitation, while local authorities fail to adequately monitor the market.(Source:https://ekantipur.com/en/business/2024/10/01/the-prices-of-vegetables-and-fruits-are-arbitrary-due-to-the-calamity-16-47.html)
