Kathmandu. KATHMANDU: The Asset Management Company (Asset Management Company), which has been studying the Nepal Rastra Bank (NRB) for a long time, is now almost certain to be completed.

The Balendra Shah-led government will regulate peer-to-peer (PTUP) transactions by implementing a personal credit scoring system, as stated on point 29 of the budget for the coming fiscal year. Policy provisions will be made to provide loans at long-term fixed interest rates in agriculture, industry, tourism and hydropower sectors. “We will establish a National Asset Management Company with special legal powers to effectively manage the growing bad loans and non-banking assets in the banking sector,” the statement reads.

This issue was also included in the previous year’s budget. This time, Finance Minister Dr. The new thing in the budget brought by Swarnim Wagle for the next fiscal year is to set a time limit. That is, the budget for the next fiscal year has said that the company will be operated by mid-January.

NRB spokesperson Guru Prasad Poudel said that the NRB has already done a lot of homework for this.

“The budget has given more priority to the steps taken by the NRB since the past. “We will move forward with the issue of small loans, transactions of any company on the basis of financial activities, measuring score on the basis of track record and disbursement of loans on the basis of score,” Poudel said at a program organized on Monday. ”

As Poudel said, most of the work has been completed by the NRB.

According to spokesperson Poudel, the NRB has already submitted the draft of the act necessary for the formation of the company to the Board of Directors of Nepal Rastra Bank. The draft was prepared by officials from the Nepal Rastra Bank, the Ministry of Finance and the Ministry of Law. Once the draft is ready, it will be fully approved by the NRB’s Board of Directors and sent to the Ministry of Finance. The Ministry of Finance will then send it to the Ministry of Law for legal opinion. The law ministry sends the law to the parliament for enactment. The House sends the bill to the parliamentary committee for discussion. The committee sends it to the full parliament with its recommendations. After the endorsement of the Act, the concerned body will implement it.

As the law has not yet been formulated, its model and investment are not yet clear. The company will have representation from the government, Nepal Rastra Bank, private sector (banks and financial institutions). If only the government agencies are invested, then the private sector is also going to participate in the work at that time, not working effectively.

According to sources, the NRB has decided to follow the good practices used by India, America, Malaysia and the Philippines. Opening a company is not new. In the current fiscal year’s budget as well as in the Monetary Policy of the last fiscal year, the Rastra Bank had made a provision that a draft of the Asset Management Act would be formulated for the purpose of establishing an asset management company to manage the non-performing assets and non-banking assets of the banks and financial institutions and submit it to the Government of Nepal. According to this provision, the NRB has already prepared the draft of the Act.

The NRB had prepared the draft of the Act as per the provisions of the Monetary Policy. There has been a demand for this for about a decade. After a long period of demand, after the draft of the Act was prepared by the Rastra Bank, the work would have started if there had been no Genji agitation on September 23 and 24. This work has been stopped after the dissolution of parliament following the Jenji movement. This government, through the budget, has set a deadline for the work that was stopped by the agitation till mid-January.

The government has also mentioned in its policy and program for the current fiscal year that an asset management company would be established at the government level to manage the non-banking assets of banks and financial institutions. The private sector has been saying that it has been delayed to bring the property management company into operation.

Private sector organizations have pointed out the need for an asset management company to provide an opportunity to restart projects that are bad loans by giving them multiple options.

The demand for property management companies in Nepal increased after the earthquake of 2072. At that time, there were indications that non-performing loans could increase in the banking sector. The demand for loans did not increase with the increase in non-performing loans. After the establishment of such a company, it is envisaged that the bank will hold the non-banking assets that cannot be auctioned or sold. In recent years, non-performing loans in banks and financial institutions have averaged more than 5 percent. Some banks have reached around 8 percent of such loans.

At present, it is very challenging for banks to manage non-banking assets and reduce non-performing loans. Recovery of loans has been a very difficult issue for banks and financial institutions for a long time. If there was a company at this time, it would have been easier to sell assets that banks could not sell.

The company can sell the assets that the bank has not sold. Properties including houses that have not been auctioned can also be sold through this process. Banks do not have unnecessary assets. It is said that it can be converted into cash in time. It is said that the company can be brought into operation within the stipulated time if the government makes a law on time.