Public Debt Management Office set up

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Public Debt Management Office set up

December 27: The government has established the Public Debt Management Office with a view to manage the public debt in an integrated way.

According to Rastriya Samachar Samiti (RSS), Finance Minister Dr Yuba Raj Khatiwada inaugurated the office in Putalisadak amidst a programme on Wednesday, December 26. The office established as a subordinate body of the Ministry of Finance will function autonomously.

Prior to this, Nepal Rastra Bank (NRB) owned the responsibility of proceeding with internal borrowings while the Public Debt and Investment Section at the Office of the Auditor General was responsible for the management of external and domestic debt. The newly established office will look after works relating to the debt management including some works of the finance ministry, according to RSS.

According to the chief of the newly opened office, Bishnuraj Dhakal, the office will help for the effective implementation of the government's fiscal and monetary policies. It will invest in public enterprises, recover loan and look after it its management. Besides, it has been given additional responsibility of looking after some task relating to the internal and external debt executed by the International Cooperation Coordination Division and Economic Policy Analysis Division under  the Ministry of Finance. It has been assigned to prepare a draft of the public debt policy as well.

On the occasion, the finance minister expressed his hope that the government’s fiscal and monetary policies will see more effectiveness with the office coming into operation.

"Capital is needed for carrying out development activities. For this, the government resources are not enough, and development cannot depend only on grants. This office will count a lot in managing public debt," RSS quoted Minister Khatiwada as saying.

According to the minister, approximately Rs 10 billion is required alone for physical infrastructure development in the next two years, and Rs 20 billion to upgrade the East-West Highway, complete railway and produce 5,000 megawatts of electricity.

NRB Governor Dr Chiranjivi Nepal expressed hope that the autonomous body would help manage the capital market of the government and internal debt. It will also help to collect foreign debt on time, he added.

Joint Secretary at the Finance of Ministry Mukunda Poudel pledged that the ministry would provide necessary support to manage the office.

 

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