The government on Sunday appointed Gopal Kafle and Maha Prasad Adhikari as deputy governors of Nepal Rastra Bank (NRB). The Kathmandu Post talked with them about the challenges facing NRB and the country’s financial system. Exerpts.
As new deputy governors of NRB, what are the challenges you see?
Gopal Kafle - According to me, balance of payment deficit, inflation, liquidity problem in the banking sector and financial discipline are the main challenges. We must work for increasing investment in productive sectors and taming inflation. In order to address the BoP deficit, we have to ensure that remittance flow remains stable. I think indiscipline in the financial sector can be controlled by strengthening NRB.
Maha Prasad Adhikari - I think the main challenge before us is to maintain financial stability. Given the large number of banks and financial institutions (BFIs), there has been unholy competition among them, posing risk to the financial system. Bad corporate governance is another challenge for the regulator. Liquidity crunch being faced by the banking system must be addressed.
Over the last two years, many instances of bad corporate governance have appeared in the banking system. How are you going address this?
Kafle - A strong central bank is a must to control bad corporate governance in the banking system which, of late, seems rising. As a senior deputy governor, my job will be to strengthen regulation and supervision on the part of the NRB. The central bank will not accept any malpractices of BFIs. One of the main reasons behind the disciplinary problems in the banking sector is due to entry of people who were not familiar with banking. Our earlier licensing policy gave priority to the capital requirement only, due to which anyone became promoters without having knowledge and experience. Therefore, we will conduct proper tests while issuing licence to BFIs.
Adhikari - There are prudential regulations in place and we have to enforce them effectively to control bad governance. There are mechanisms to take action against those involved in malpractices. All the actions taken against BFIs don’t come to the public as well.
Don’t you think that the central bank’s recent moves such as guidelines on CEOs’ salary and service charge have widened the rift between NRB and BFIs?
Kafle - There shouldn’t be any differences between the central bank and the BFIs and we’re ready to address BFIs’ concerns. The central bank had taken some measures to bring discipline in the banking system. Unfortunately, some bankers took this as NRB’s attempt to control banks. We will continue to adopt policy based on liberalisation.
Adhikari - It is natural to see difference of opinions, as priorities are different. The core objective of BFIs is profit maximisation, while the central bank’s objective is to bring financial stability. When the central bank takes some measure to stabilise the banking sector, it is natural to see some resentment on the part of bankers.
Posted on: 2010-12-30 09:08
http://www.ekantipur.com/2010/12/30/business/strengthening-nrb-our-priority/327279/
Donnerstag, 30. Dezember 2010
डेपुटी गभर्नरको सपथ ग्रहणमा १० कार्यकारी निर्देशक अनुपस्थित
सुदर्शन सापकोटा, काठमाडौं, पुस १५ - राष्ट्र बैंकका १० विभागीय प्रमुखले दुई डेपुटी गभर्नरको सपथ ग्रहण कार्यक्रम बहिस्कार गरी नियुक्तिप्रति असन्तुष्टि देखाएका छन्। गभर्नर युवराज खतिवडाको सिफारिसअनुसार मन्त्रिपरिषदले डेपुटी गभर्नरमा कार्यकारी निर्देशकद्वय गोपाल काफ्ले र महाप्रसाद अधिकारीलाई नियुक्त गरेको थियो।
नवनियुक्त डेपुटीहरुलाई बुधबार गभर्नरले राष्ट्र बैंक मूख्यालय वालुवाटारमा सपथ ग्रहण गराउने कार्यक्रममा १० विभागीय प्रमुख अनुपस्थित थिए। बैंकले सबै विभागीय प्रमुखलाई कार्यक्रममा उपस्थितिका लागि आमन्त्रण गरेको थियो। तर, उनीहरुले नयाँ नियुक्तिप्रति असन्तुष्टि देखाउन कार्यक्रम नै बहिस्कार गरे। डेपुटी गभर्नरमध्ये काफ्ले पहिलो र अधिकारी तेह्रौं वरियतामा थिए।
'सिफारिस प्रक्रिया अपारदर्शी र तर्क संगत नभएकाले सपथ ग्रहण कार्यक्रम वहिस्कार गरेको हुँ,' डेपुटी गभर्नरका आकांक्षीमध्येका एक कार्यकारी निर्देशकले बुधबार नागरिकसँग भने, 'यो वहिस्कारले गभर्नरको सिफारिसप्रति हामी सहमत छैनौं भन्ने सन्देश दिएको छ।'
कार्यक्रममा बैंक सुपरिवेक्षण विभाग र वित्तीय संस्था सुपरिवेक्षण विभागका कार्यकारी निर्देशक क्रमशः लोकबहादुर खड्का र विष्णु नेपाल मात्र उपस्थित थिए। अधिकांश कार्यालय गएर पनि १० कार्यकारी निर्देशक सपथ ग्रहण कार्यक्रममा अनुपस्थित भए।
यसअघि पनि वरिष्टलाई छोडेर कनिष्ट डेपुटी गभर्नर नियुक्त भएका थिए। त्यसबेला केहि निर्देशकहरुले विरोध जनाएका थिए। तर, यति धेरै संख्यामा निर्देशकहरुले विरोध गरेको पहिलो पटक हो। यअअघि पनि वरिष्ठताको श्रेणीमा नवौं स्थानमा रहेका वीरविक्रम रायमाझीलाई मन्त्रीपरिषद्ले डेपुटी गभर्नरमा नियुक्त गरेको थियो। त्यसबेला वरिष्ठता मिचिएको भन्दै तत्कालिन कार्यकारी निर्देशक राजनसिंह भण्डारीले आफ्नो पदबाट राजिनामा गरेका थिए।
धेरै निर्देशकहरु असन्तुष्टि भएको र यो लामो समयसम्म रहे गभर्नर खतिवडालाई आगामी दिनमा काम गर्न असजिलो हुन सक्नेछ।
'मसँग बाँकी १२ जना साथी पनि योग्य हुनुहुन्थ्यो, तर दुई जनाको मात्र डेपुटी पद हुने भएकाले सबैलाई सिफारिस गर्न सकिन,' कार्यक्रमलाई सम्बोधन गर्दै गभर्नर खतिवडाले भने। वरिष्ठताका कुरा भावनात्मक भएको भन्दै उनले आफ्नै क्षमताले सतहमा आएर सबैले देखिने खालको काम गर्नुपर्ने बताए।
राष्ट्र बैंक ऐन २०५८ को धारा १६ अनुसार कार्यकारी निर्देशकबाट डेपुटी गभर्नर नियुक्त गर्ने व्यवस्था छ। ऐनमा गभर्नरले डेपुटी गभर्नर पदमा नियुक्तिको लागि सिफारिस गर्दा बैंकका विशिष्ट श्रेणीका अधिकृतहरुमध्येबाट कार्यक्षमताको आधारमा रिक्त पदको दोब्बर संख्यामा नामावली सिफारिस गर्नुपर्ने उल्लेख छ। ऐनले वरिष्टलाई मात्र सिफारिस गर्नुपर्ने वाध्यता गरेको छैन।गभर्नरले कार्यक्षमता र आफुलाई बढी सहयोग गर्न सक्ने निर्देशकलाई सिफारिस गर्न सक्छन्।
राष्ट्र बैंकका एक निर्देशकका अनुसार, सबै कार्यकारीले भविस्यमा पनि असहयोग जारी राखेमा गभर्नरलाई काम गर्न गाह्रो हुनेछ। 'विभागीय कामहरु कार्यकारी निर्देशकहरुको माध्यमबाट हुन्छ,' उनले भने, 'यसमा असहयोग भए गभर्नरलाई काम गर्न गाह्रो हुन्छ। उनले चाहेर पनि केही गर्न सक्दैनन्।'
'पदले पाएको प्रतिष्ठा विजुलीको स्विच बोर्डबाट झिकिदिएको प्लग जस्तै हो,' गभर्नरले कार्यकारी निर्देशकबाट भविस्यमा असहयोग हुनसक्ने महशुस गर्दै कार्यक्रममा भने, 'प्रतिष्ठा जोगाइ राख्न प्रतिस्पर्धी र सबैले देखिने खालको हुनु पर्छ।' उनले संस्थागत हितका लागि सबैले मिलेर जानुको विकल्प नरहेको पनि बताए। 'सबैले परिवर्तन स्वीकार गरेर जानुपर्छ, परिवर्तन स्वीकार नगर्ने बढारिएर जान्छन्।' खतिवडाले भने।
डेपुटी गभर्नर काफ्लेले विगतका सबै तिता कुराहरु विर्सिएर अगाडि बढ्नु पर्ने बताए। 'हिजो क-कसले दौडधुप (डेपुटी गभर्नर पदका लागि) गरे भन्ने कुरा विर्सिनुपर्छ,' सपथ ग्रहणपछि उनले भने, 'सबै एकढिक्का भएर अघि बढे मुलुकका सबै आर्थिक चुनौति समाधान गर्न सकिन्छ।'
अर्का डेपुटी गभर्नर अधिकारीले राष्ट्र बैंकको संरचना बलियो भएकाले चुनौति पार गर्न सकिने बताए। डेपुटी गभर्नर नियुक्तिको विवादमा भने उनले केहि बोलेनन्।
राष्ट्र बैंक कर्मचारी युनियनका अधिकारीहरुले पनि नियुक्त प्रक्रियाका बारेमा विवाद गर्न नहुने भन्दै मिलेर अगाडि बढ्नु पर्ने बताए। 'डेपुटी गभर्नर राजनीतिक पद भएकाले यसमा वरिष्ठता खोज्न हुँदैन,' राष्ट्र बैंक राष्ट्रिय कर्मचारी संगठनका अध्यक्ष तिर्थ शिलवालले भने, 'ऐनले नै कार्यकारी निर्देशकबाट जो पनि हुनसक्ने व्यवस्था गरेकाले नियुक्त प्रक्रियामा असन्तुष्टी जनाउनु व्यवहारिक हुँदैन।'
'नियुक्तिका बारेमा कार्यकारी निर्देशकहरुमा असन्तोष रहनु हुँदैन,' युनियनका अध्यक्षहरुले भने।
http://nagariknews.com/economy/industries/21871-2010-12-29-13-28-43.html
नवनियुक्त डेपुटीहरुलाई बुधबार गभर्नरले राष्ट्र बैंक मूख्यालय वालुवाटारमा सपथ ग्रहण गराउने कार्यक्रममा १० विभागीय प्रमुख अनुपस्थित थिए। बैंकले सबै विभागीय प्रमुखलाई कार्यक्रममा उपस्थितिका लागि आमन्त्रण गरेको थियो। तर, उनीहरुले नयाँ नियुक्तिप्रति असन्तुष्टि देखाउन कार्यक्रम नै बहिस्कार गरे। डेपुटी गभर्नरमध्ये काफ्ले पहिलो र अधिकारी तेह्रौं वरियतामा थिए।
'सिफारिस प्रक्रिया अपारदर्शी र तर्क संगत नभएकाले सपथ ग्रहण कार्यक्रम वहिस्कार गरेको हुँ,' डेपुटी गभर्नरका आकांक्षीमध्येका एक कार्यकारी निर्देशकले बुधबार नागरिकसँग भने, 'यो वहिस्कारले गभर्नरको सिफारिसप्रति हामी सहमत छैनौं भन्ने सन्देश दिएको छ।'
कार्यक्रममा बैंक सुपरिवेक्षण विभाग र वित्तीय संस्था सुपरिवेक्षण विभागका कार्यकारी निर्देशक क्रमशः लोकबहादुर खड्का र विष्णु नेपाल मात्र उपस्थित थिए। अधिकांश कार्यालय गएर पनि १० कार्यकारी निर्देशक सपथ ग्रहण कार्यक्रममा अनुपस्थित भए।
यसअघि पनि वरिष्टलाई छोडेर कनिष्ट डेपुटी गभर्नर नियुक्त भएका थिए। त्यसबेला केहि निर्देशकहरुले विरोध जनाएका थिए। तर, यति धेरै संख्यामा निर्देशकहरुले विरोध गरेको पहिलो पटक हो। यअअघि पनि वरिष्ठताको श्रेणीमा नवौं स्थानमा रहेका वीरविक्रम रायमाझीलाई मन्त्रीपरिषद्ले डेपुटी गभर्नरमा नियुक्त गरेको थियो। त्यसबेला वरिष्ठता मिचिएको भन्दै तत्कालिन कार्यकारी निर्देशक राजनसिंह भण्डारीले आफ्नो पदबाट राजिनामा गरेका थिए।
धेरै निर्देशकहरु असन्तुष्टि भएको र यो लामो समयसम्म रहे गभर्नर खतिवडालाई आगामी दिनमा काम गर्न असजिलो हुन सक्नेछ।
'मसँग बाँकी १२ जना साथी पनि योग्य हुनुहुन्थ्यो, तर दुई जनाको मात्र डेपुटी पद हुने भएकाले सबैलाई सिफारिस गर्न सकिन,' कार्यक्रमलाई सम्बोधन गर्दै गभर्नर खतिवडाले भने। वरिष्ठताका कुरा भावनात्मक भएको भन्दै उनले आफ्नै क्षमताले सतहमा आएर सबैले देखिने खालको काम गर्नुपर्ने बताए।
राष्ट्र बैंक ऐन २०५८ को धारा १६ अनुसार कार्यकारी निर्देशकबाट डेपुटी गभर्नर नियुक्त गर्ने व्यवस्था छ। ऐनमा गभर्नरले डेपुटी गभर्नर पदमा नियुक्तिको लागि सिफारिस गर्दा बैंकका विशिष्ट श्रेणीका अधिकृतहरुमध्येबाट कार्यक्षमताको आधारमा रिक्त पदको दोब्बर संख्यामा नामावली सिफारिस गर्नुपर्ने उल्लेख छ। ऐनले वरिष्टलाई मात्र सिफारिस गर्नुपर्ने वाध्यता गरेको छैन।गभर्नरले कार्यक्षमता र आफुलाई बढी सहयोग गर्न सक्ने निर्देशकलाई सिफारिस गर्न सक्छन्।
राष्ट्र बैंकका एक निर्देशकका अनुसार, सबै कार्यकारीले भविस्यमा पनि असहयोग जारी राखेमा गभर्नरलाई काम गर्न गाह्रो हुनेछ। 'विभागीय कामहरु कार्यकारी निर्देशकहरुको माध्यमबाट हुन्छ,' उनले भने, 'यसमा असहयोग भए गभर्नरलाई काम गर्न गाह्रो हुन्छ। उनले चाहेर पनि केही गर्न सक्दैनन्।'
'पदले पाएको प्रतिष्ठा विजुलीको स्विच बोर्डबाट झिकिदिएको प्लग जस्तै हो,' गभर्नरले कार्यकारी निर्देशकबाट भविस्यमा असहयोग हुनसक्ने महशुस गर्दै कार्यक्रममा भने, 'प्रतिष्ठा जोगाइ राख्न प्रतिस्पर्धी र सबैले देखिने खालको हुनु पर्छ।' उनले संस्थागत हितका लागि सबैले मिलेर जानुको विकल्प नरहेको पनि बताए। 'सबैले परिवर्तन स्वीकार गरेर जानुपर्छ, परिवर्तन स्वीकार नगर्ने बढारिएर जान्छन्।' खतिवडाले भने।
डेपुटी गभर्नर काफ्लेले विगतका सबै तिता कुराहरु विर्सिएर अगाडि बढ्नु पर्ने बताए। 'हिजो क-कसले दौडधुप (डेपुटी गभर्नर पदका लागि) गरे भन्ने कुरा विर्सिनुपर्छ,' सपथ ग्रहणपछि उनले भने, 'सबै एकढिक्का भएर अघि बढे मुलुकका सबै आर्थिक चुनौति समाधान गर्न सकिन्छ।'
अर्का डेपुटी गभर्नर अधिकारीले राष्ट्र बैंकको संरचना बलियो भएकाले चुनौति पार गर्न सकिने बताए। डेपुटी गभर्नर नियुक्तिको विवादमा भने उनले केहि बोलेनन्।
राष्ट्र बैंक कर्मचारी युनियनका अधिकारीहरुले पनि नियुक्त प्रक्रियाका बारेमा विवाद गर्न नहुने भन्दै मिलेर अगाडि बढ्नु पर्ने बताए। 'डेपुटी गभर्नर राजनीतिक पद भएकाले यसमा वरिष्ठता खोज्न हुँदैन,' राष्ट्र बैंक राष्ट्रिय कर्मचारी संगठनका अध्यक्ष तिर्थ शिलवालले भने, 'ऐनले नै कार्यकारी निर्देशकबाट जो पनि हुनसक्ने व्यवस्था गरेकाले नियुक्त प्रक्रियामा असन्तुष्टी जनाउनु व्यवहारिक हुँदैन।'
'नियुक्तिका बारेमा कार्यकारी निर्देशकहरुमा असन्तोष रहनु हुँदैन,' युनियनका अध्यक्षहरुले भने।
http://nagariknews.com/economy/industries/21871-2010-12-29-13-28-43.html
Mittwoch, 8. Dezember 2010
White paper on PPP on the cards
KATHMANDU, Dec 7: National Planning Commission (NPC) is about to finalize the national white paper on Public Private Partnership (PPP), offering incentives to private sector, including facilitation on lending in PPP projects from financial institutions (FIs).
NPC - the apex policy making body of the government - said Monday the whitepaper will envisage setting up a PPC center at national level and PPP cell at concerned ministries and issuance of guidelines to FIs to extend loans conveniently.
The commission is currently bys formulating the whitepaper with financial support of United Nations Development Program (UNDP).
In an effort to utilize the capital and professionalism of private sector to ensure sustainability of development projects, the government had constituted a taskforce led by NPC Member Pushkar Bajracharya to formulate the whitepaper some eight months back.
An interaction with concerned stakeholders was organized in the capital Monday to as a part of giving final shape to the draft of the whitepaper. Experts and business people commented on the draft, according to NPC.
Published on 2010-12-07 02:45:53
http://www.myrepublica.com/portal/index.php?action=news_details&news_id=25935
NPC - the apex policy making body of the government - said Monday the whitepaper will envisage setting up a PPC center at national level and PPP cell at concerned ministries and issuance of guidelines to FIs to extend loans conveniently.
The commission is currently bys formulating the whitepaper with financial support of United Nations Development Program (UNDP).
In an effort to utilize the capital and professionalism of private sector to ensure sustainability of development projects, the government had constituted a taskforce led by NPC Member Pushkar Bajracharya to formulate the whitepaper some eight months back.
An interaction with concerned stakeholders was organized in the capital Monday to as a part of giving final shape to the draft of the whitepaper. Experts and business people commented on the draft, according to NPC.
Published on 2010-12-07 02:45:53
http://www.myrepublica.com/portal/index.php?action=news_details&news_id=25935
No new investment in NBL, RBB: FM
KATHMANDU, Dec 7: After much dilly-dallying, the government has finally made it clear that it will not invest further in Rastriya Banijya Bank (RBB) and Nepal Bank Limited (NBL) to recapitalize the two ailing banks.
Instead, it has preferred to go for the divestment of its shares to induct strategic partner to turnaround their financial outlook.
The clarity on the government´s decision evolved mainly after the Ministry of Finance started discussions over different options to recapitalize RBB and NBL that have been subjected to financial sector reforms.
“We are discussing on all available options to recapitalize and restructure RBB and NBL, as we committed in the budget for the current fiscal year. Clearly, they do not include the option of government investing further in the banks,” Finance Minister Surendra Pandey told Republica on Monday.
If Pandey stood firm on his stance and managed to make it government´s formal decision, it will make clear the future course of Financial Sector Reform Program (FSRP), which is ending next year.
Although the government´s end goal while starting the FSRP was to privatize the ailing banks, it´s lack of clear decision on future structure of the banks has been creating confusion among concerned stakeholders.
Particularly, it had hindered Nepal Rastra Bank from developing a concrete exit and restructuring action plan on NBL, the management of which has been taken over by the central bank.
“This will ease our work and facilitate us to work on other alternatives to restructure and exit from NBL,” said a central bank official.
Presently, RBB has negative net worth of Rs 9.5 billion and NBL too is in need of additional Rs 7.10 billion to do away with its negative net worth and comply with NRB´s capital adequacy provision.
“The government´s priority is development and it has no money to inject in the banks,” Pandey said.
Ministry of Finance is presently discussing on different options to recapitalize the ailing banks, and the options include divestment and induction of strategic partner, selling assets to generate required capital, and asking the banks to earn and fulfill the capital gap on their own.
However, given the legal complexities, capacity constraints and longer time required to turnaround negative net worth situation through annual income, Pandey said the government has limited scope of leaving the banks to decide their fate on their own.
“Practically, this leaves divestment and induction of strategic partner as the most practical option for the government,” he added.
In case of NBL, the government is also discussing the option of rights issue in limited proportion to existing shareholders and induct strategic partner, allowing it to take major chunk of the rights share.
The government has around 39 percent stake in NBL and rest is held by the private players, public and employees. On the other hand, it holds cent percent stake in RBB.
Published on 2010-12-07 04:00:18
http://www.myrepublica.com/portal/index.php?action=news_details&news_id=25933
Instead, it has preferred to go for the divestment of its shares to induct strategic partner to turnaround their financial outlook.
The clarity on the government´s decision evolved mainly after the Ministry of Finance started discussions over different options to recapitalize RBB and NBL that have been subjected to financial sector reforms.
“We are discussing on all available options to recapitalize and restructure RBB and NBL, as we committed in the budget for the current fiscal year. Clearly, they do not include the option of government investing further in the banks,” Finance Minister Surendra Pandey told Republica on Monday.
If Pandey stood firm on his stance and managed to make it government´s formal decision, it will make clear the future course of Financial Sector Reform Program (FSRP), which is ending next year.
Although the government´s end goal while starting the FSRP was to privatize the ailing banks, it´s lack of clear decision on future structure of the banks has been creating confusion among concerned stakeholders.
Particularly, it had hindered Nepal Rastra Bank from developing a concrete exit and restructuring action plan on NBL, the management of which has been taken over by the central bank.
“This will ease our work and facilitate us to work on other alternatives to restructure and exit from NBL,” said a central bank official.
Presently, RBB has negative net worth of Rs 9.5 billion and NBL too is in need of additional Rs 7.10 billion to do away with its negative net worth and comply with NRB´s capital adequacy provision.
“The government´s priority is development and it has no money to inject in the banks,” Pandey said.
Ministry of Finance is presently discussing on different options to recapitalize the ailing banks, and the options include divestment and induction of strategic partner, selling assets to generate required capital, and asking the banks to earn and fulfill the capital gap on their own.
However, given the legal complexities, capacity constraints and longer time required to turnaround negative net worth situation through annual income, Pandey said the government has limited scope of leaving the banks to decide their fate on their own.
“Practically, this leaves divestment and induction of strategic partner as the most practical option for the government,” he added.
In case of NBL, the government is also discussing the option of rights issue in limited proportion to existing shareholders and induct strategic partner, allowing it to take major chunk of the rights share.
The government has around 39 percent stake in NBL and rest is held by the private players, public and employees. On the other hand, it holds cent percent stake in RBB.
Published on 2010-12-07 04:00:18
http://www.myrepublica.com/portal/index.php?action=news_details&news_id=25933
Realtors cut prices up to 30%
MILAN MANI SHARMA
KATHMANDU, Dec 8: Real estate dealers, who long resisted selling pressure for fear of a downward price spiral, have started to cut prices in a bid to lure buyers and recoup possible investment at the earliest.
On Tuesday, Uddav Raj Bhattarai, chairman of Kapan Housing, placed an advertisement in a national daily offering to sell land at a lowered rate of Rs 350,000 per ana (342.25 square feet).
Just a couple of months ago, he had sold numerous plots of the same land at half a million rupees. "Not only that, I have slashed the rate of a 800 square feet stand-alone groundfloor house to Rs 5.5 million from Rs 6.5 million,” he informed Republica.
Laxmi Neupane, chairman of Manakamana Housing, has a similar story. He recently reduced prices of residential plots at Hattigaunda which he had developed, to Rs 800,000 per ana from Rs 1 million. Till a month ago, he was adamant he need not review the prices even though transactions had nosedived.
In general, real estate dealers have slashed prices by as much as 30 percent in Kathmandu, said realty experts. “Unfortunately, most of them are failing to lure buyers even at the lowered rates,” said Neupane.
As the realty market wore a deserted look, Raj Kumar Maharjan of Indreni Real Estate told Republica he is facing trouble managing cash even to pay his office rent whereas his monthly income was running at a million last year.
People like Maharjan who deal in property on loans taken from family and relatives, said they have no option but to lower the prices to recoup investment and settle dues. Dealers like Neupane, who are into real estate with loans from banks, said on the other hand that they have reached a point whereby they can no longer resist the heat. “After holding the price for almost a year, the pressure is now unbearable," he said.
Experts like Buddhi Narayan Shrestha, who is also an advisor to the Nepal Land and Housing Developers´ Association (NLHDA), said land prices have not dropped at prime locations and in cases where the developers invested personal money.
“Otherwise, prices have invariably dropped in ranges of 20 to 30 percent in the outskirts of Kathmandu, 15 -25 percent in Lalitpur and 10 to 25 percent in Bhaktapur,” he said.
Still, most dealers preferred to maintain silence about their price cuts and selling spree; they fear it might spark a downward trajectory, something which could hit their investments hard.
Nepal´s real estate business has been jittery since January 2010, particularly after the central bank imposed a cap on the loan exposure of banks and financial institutions (BFIs) to the sector. The move was aimed at cooling the overheated market.
While the imposition of a capital gains tax and income disclosure on property transactions above Rs 3 million discouraged commercial buyers, rise in the lending rate that jumped from 9 percent to 17 percent amid the liquidity crunch also drove away buyers.
As a result, the five land revenue offices (LROs) in the capital valley, which used to be heavily crowded with service seekers, wear a deserted look at present.
“Our average daily transactions now number around 80. Last year, it used to be well over 250 and managing the rush used to give us a tough time,” said Hari Prasad Gauchan, an officer at Chabahil LRO.
Transactions at Dillibazar have dropped to 50 a day from well over 200, while transactions at Kalanki too have dipped to an average of 30 from last year´s daily average of 200. The situation at Bhaktapur and Lalitpur LROs is no different.
Owing to the dip, the government´s revenue collection from realty transactions in the month from mid-September to mid-October dropped to Rs 90.08 million. It had collected Rs 317.20 million in the same month last year.
Although NRB in September 2010 relaxed its cap on housing loan exposure, it continued to tighten real estate loans, including loans issued for land plotting and procurement.
“As the directive seeks BFIs to limit their realty portfolio to 10 percent of total loans by 2011/12, most of them have stopped renewing loans in the sector,” said Sudhir Khatri, chief executive of DCBL Bank. Some financial institutions are even seeking parties to repay as early as possible.
This has upped the selling pressure and some 75 percent of real estate dealers, who trade with loans and informally borrowed money, are under severe stress, said Shrestha, adding that he foresees many of them jumping into the selling current soon.
Published on 2010-12-08 00:00:01
http://www.myrepublica.com/portal/index.php?action=news_details&news_id=25972
KATHMANDU, Dec 8: Real estate dealers, who long resisted selling pressure for fear of a downward price spiral, have started to cut prices in a bid to lure buyers and recoup possible investment at the earliest.
On Tuesday, Uddav Raj Bhattarai, chairman of Kapan Housing, placed an advertisement in a national daily offering to sell land at a lowered rate of Rs 350,000 per ana (342.25 square feet).
Just a couple of months ago, he had sold numerous plots of the same land at half a million rupees. "Not only that, I have slashed the rate of a 800 square feet stand-alone groundfloor house to Rs 5.5 million from Rs 6.5 million,” he informed Republica.
Laxmi Neupane, chairman of Manakamana Housing, has a similar story. He recently reduced prices of residential plots at Hattigaunda which he had developed, to Rs 800,000 per ana from Rs 1 million. Till a month ago, he was adamant he need not review the prices even though transactions had nosedived.
In general, real estate dealers have slashed prices by as much as 30 percent in Kathmandu, said realty experts. “Unfortunately, most of them are failing to lure buyers even at the lowered rates,” said Neupane.
As the realty market wore a deserted look, Raj Kumar Maharjan of Indreni Real Estate told Republica he is facing trouble managing cash even to pay his office rent whereas his monthly income was running at a million last year.
People like Maharjan who deal in property on loans taken from family and relatives, said they have no option but to lower the prices to recoup investment and settle dues. Dealers like Neupane, who are into real estate with loans from banks, said on the other hand that they have reached a point whereby they can no longer resist the heat. “After holding the price for almost a year, the pressure is now unbearable," he said.
Experts like Buddhi Narayan Shrestha, who is also an advisor to the Nepal Land and Housing Developers´ Association (NLHDA), said land prices have not dropped at prime locations and in cases where the developers invested personal money.
“Otherwise, prices have invariably dropped in ranges of 20 to 30 percent in the outskirts of Kathmandu, 15 -25 percent in Lalitpur and 10 to 25 percent in Bhaktapur,” he said.
Still, most dealers preferred to maintain silence about their price cuts and selling spree; they fear it might spark a downward trajectory, something which could hit their investments hard.
Nepal´s real estate business has been jittery since January 2010, particularly after the central bank imposed a cap on the loan exposure of banks and financial institutions (BFIs) to the sector. The move was aimed at cooling the overheated market.
While the imposition of a capital gains tax and income disclosure on property transactions above Rs 3 million discouraged commercial buyers, rise in the lending rate that jumped from 9 percent to 17 percent amid the liquidity crunch also drove away buyers.
As a result, the five land revenue offices (LROs) in the capital valley, which used to be heavily crowded with service seekers, wear a deserted look at present.
“Our average daily transactions now number around 80. Last year, it used to be well over 250 and managing the rush used to give us a tough time,” said Hari Prasad Gauchan, an officer at Chabahil LRO.
Transactions at Dillibazar have dropped to 50 a day from well over 200, while transactions at Kalanki too have dipped to an average of 30 from last year´s daily average of 200. The situation at Bhaktapur and Lalitpur LROs is no different.
Owing to the dip, the government´s revenue collection from realty transactions in the month from mid-September to mid-October dropped to Rs 90.08 million. It had collected Rs 317.20 million in the same month last year.
Although NRB in September 2010 relaxed its cap on housing loan exposure, it continued to tighten real estate loans, including loans issued for land plotting and procurement.
“As the directive seeks BFIs to limit their realty portfolio to 10 percent of total loans by 2011/12, most of them have stopped renewing loans in the sector,” said Sudhir Khatri, chief executive of DCBL Bank. Some financial institutions are even seeking parties to repay as early as possible.
This has upped the selling pressure and some 75 percent of real estate dealers, who trade with loans and informally borrowed money, are under severe stress, said Shrestha, adding that he foresees many of them jumping into the selling current soon.
Published on 2010-12-08 00:00:01
http://www.myrepublica.com/portal/index.php?action=news_details&news_id=25972
Mittwoch, 1. Dezember 2010
एक बैंक र ४ फाइनान्स खारेज हुनसक्छ'
सुदर्शन सापकोटा, काठमाडौं, मंसिर १६ - केन्द्रीय बैंकले एक विकास बैंकसहित पाँच वित्तीय संस्थालाई 'खारेज गर्नु नपर्ने' कारण खुलाउन माग गर्दै स्पटीकरण सोध्ने भएको छ। युनाइटेड डेभलपमेन्ट बैंक,हामा फाइनान्स, मर्कन्टायल र इन्भेस्टा फाइनान्स तथा मल्टिपर्पोज फाइनान्ससँग स्पटीकरण सोध्न लागिएको हो।
'समय सीमाभित्र साधारण सेयर जारी नगरेका तथा समानुपातिक रुपमा पुँजी वृद्धि नगरेका कारण एक साताभित्रमा स्पटीकरण सोध्न लागेका छौ,' राष्ट्र बैंकका एक अधिकारीले बुधबार नागरिकसँग भने।
उनका अनुसार 'कम्तिमा १५ र बढीमा ३५ दिनको म्याद दिँदै माग गरिएको स्पष्टीकरण चित्त बुझ्दो नआए हामी कम्पनीलाई खारेजसमेत गर्न सक्छौं,' केन्द्रीय बैंकका ती अधिकारीले भने।
तीन बर्षदेखि १० बर्षसम्म संचालनमा रहेका ती कम्पनीले हालसम्म साधारण सेयर निस्कासन गरेका छैनन्। २०७० सम्म समानुपातिक रुपमा पुँजी वृद्धि गर्नु पर्ने नियम पनि यिनीहरुले पालना गरेका छैनन्। केन्द्रीय बैंकले स्पष्टीकरण सोधिएका यी कम्पनीको बोनस तथा लाभांश वितरण, कर्जा प्रवाह र निक्षेप संकलनमा रोक लगाइसकेको छ।
केन्द्रीय बैंकले बैंक तथा वित्तीय संस्था ऐनको वित्तीय करोबार गर्ने इजाजतपत्र सम्बन्धी नीतिगत एवं प्रक्रियागत व्यवस्थाअनुसार वाणिज्य बैंकलाई २०७० सम्म दुई अर्ब चुक्ता पुँजी पुर्याउन अनिवार्य गरेको छ। यस्तै राष्ट्रियस्तरको विकास बैंकलाई ६४ करोड, चारदेखि १० जिल्लामा कारोवार गर्ने विकास बैंकलाई २० करोड र एकदेखि तीन जिल्लामा कारोबार गर्ने विकास बैंकलाई १० करोड रुपैयाँ चुक्ता पुँजी पुर्याउनु पर्ने हुन्छ। फाइनान्स कम्पनीले पनि कारोवार क्षेत्रअनुसार १० देखि २० करोड रुपैयाँ चुक्ता पुँजी पुर्याउनु पर्छ।
कम्पनीहरुले २०६४ असार मसान्तलाई आधार वर्षका रुपमा लिएर आर्थिक वर्ष २०६४/६५ देखि हरेक वर्ष नपुग रकमको समानुपातिक दरले पुँजी वृद्धि गर्दै लैजानु पर्ने हुन्छ।
आर्थिक वर्ष २०६७/६८ मा पुँजी वृद्धि नगर्नेलाई कर्जा असुली र निक्षेप भुक्तानी बाहेकका सम्पुर्ण कारोबारमा प्रतिबन्ध लगाउँन सक्ने बैंक तथा वित्तीय संस्था सम्वन्धि ऐनले गरेको व्यवस्था अनुसार केन्द्रीय बैंकले खारेज गर्न नपर्ने कारण सोध्दै स्पष्टीकरण माग गरेको हो।
गत माघमा राष्ट्र बैंकले समानुपातिक रुपमा चुक्ता पुँजी वृद्धि नगर्ने १० कम्पनीसँग स्पष्टीकरण माग गरेको थियो। ती मध्ये पाँच कम्पनीले राष्ट्र बैंकको निर्देशन अनुसार साधारण सेयर निस्कासन तथा समानुपातिक पुँजी गर्ने प्रक्रियामा गइसकेकाले बाँकी पाँचलाई कारवाही गर्नु अघि स्पष्टीकरण सोध्न लागेको हो।
राष्ट्र बैंकका अनुसार पाँच कम्पनीमध्ये युनाइटेड डेभलपमेन्टको मात्र वित्तीय अवस्था खराब छ। 'बाँकी चार वित्तीय कम्पनीको अवस्था खराब भएर कारवाही गर्न लागिएको होइन,' ती अधिकारीले भने, 'राष्ट्र बैंकको नियमन पालना नगरेकाले कारवाही गर्नु परेको हो।'
Copied by Pawan Kumar Lamichhane from: http://nagariknews.com/economy/industries/20937-2010-12-01-14-52-51.html
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