National Asset Management Company to be Established by Poush
Summary
Nepal is set to establish a National Asset Management Company by Poush to manage increasing non-performing loans and non-banking assets in the banking sector, aiming to restore liquidity and enable banks to focus on core functions.
Key Points
- Nepal plans to establish a National Asset Management Company by the end of Poush to tackle rising non-performing loans and non-banking assets in banks.
- Non-performing loans have surged, with a ratio of 5.7% to total loan disbursement and around 10.9% loans at risk, totaling trillions of rupees.
- The Asset Management Company will buy bad loans and collateral from banks, add value to assets, and sell them to recoup funds.
- Funding for the company is expected through government-guaranteed bonds, avoiding immediate cash outflow while providing liquidity to banks.
