Earlier, interest-free loans were announced for Emiratis whose businesses were affected by the rains, with a grace period of 6 to 12 months
uae5 hours ago
Nepal is asking citizens living abroad to deposit funds in domestic banks as part of efforts to ensure the financial system has enough liquidity and to preserve foreign exchange reserves, finance minister Janardan Sharma said on Saturday.
Speaking to Reuters, he denied Nepal was facing an economic crisis despite the impact of soaring commodity prices as the tourist industry, a key source of revenues, struggles to recover after the Covid-19 pandemic.
Nepal, wedged between China and India, this month imposed curbs on luxury goods imports to rein in capital outflows. Foreign exchange reserves fell over 18 per cent to $9.6 billion as of mid-March from mid-July - enough for around six months imports.
By depositing their savings in Nepal, overseas Nepalis would continue to “maintain their link as well as benefit from 6 to 7 per cent interest” offered by Nepali banks, Sharma said.
Sharma said the economy did not face a crisis and Nepal’s situation could not be compared with Sri Lanka. That South Asian country is facing its worst economic crisis in decades and anti-government protests.
In Nepal, remittances by overseas workers, which constitute nearly a quarter of the economy and are crucial for external payments, fell 3.0% to $5.3 billion between mid-July to mid-March, compared with a 5 per cent increase in the same period a year earlier.
Earnings from tourism, which fell sharply after the start of the pandemic in 2020, are slowly picking up, but remain well below pre-Covid levels.
ALSO READ:
Sharma said if 100,000 Nepali nationals living abroad deposited $10,000 each in Nepali banks it could go a long way to help Nepal overcome the current liquidity constrains.
Nepal has also decided to accept $659 million in aid from the United States and about $150 million in soft loan from the World Bank, Sharma said.
“The money to be received from the United States over five years is a (non-refundable) grant,” he said.
Earlier, interest-free loans were announced for Emiratis whose businesses were affected by the rains, with a grace period of 6 to 12 months
uae5 hours ago
Following a $3 per barrel average global price increase in March, petrol prices for April increased by 12 fils per litre in the UAE
uae5 hours ago
Annual rents in Dubai are usually paid in two, four or six instalments via post-dated cheques
business5 hours ago
NCM official says May 2-3 is identified as the ‘peak’ of the situation
weather5 hours ago
PSG are still involved in the Champions League in what could turn out to be the club's finest ever season
football10 hours ago
World number three Alcaraz, 20, missed a month prior to Madrid with a forearm issue
tennis11 hours ago
It was Chennai's fifth win from nine matches as they moved to third place in the points table with 10 points
cricket11 hours ago
Earlier, Arsenal held on for a pulsating 3-2 win over arch rivals Tottenham
football12 hours ago