Himalayan News Service

Kathmandu, February 2:

Nepal Rastra Bank (NRB), the central bank of the country, during fiscal year 2003-04 has issued various types of security bonds worth over Rs 5.81 billion.

According to a latest report produced by the central bank, at the end of 2003-04 which is for the review period of the bank about its activities, development bonds were issued worth Rs 2 billion, national saving bonds for Rs 900 million, treasury bills for Rs 2.46 billion, special credit bonds for Rs 205 million, citizens’ saving bonds for Rs 248 million.

During the review period, out of the total issued internal borrowings, 63.8 per cent has been collected from banking sector while 36.2 per cent has been recovered from non-banking sector, said the NRB report.

Of the total issued bonds/securities to individuals (National saving bonds and citizens saving bonds), the amount of such bonds has decreased compared to previous years while the bonds’ amount (development bonds and treasury bonds) issued for banks and financial institutions has gone up.

Until the 2004 July 15, the central bank owns a total of treasury bills worth Rs 9.80 billion, development bonds of over Rs 4 billion, special bonds worth Rs 860 million, national saving bonds Rs 400 million and citizens saving bonds of Rs 40 million.

A total of bonds worth Rs 15.13 billion are under the ownership of the central bank. As per the NRB’s review report, the total amount of bonds under the ownership of NRB has gone down by 26.3 per cent.

All issued bonds were not sold out and the government did not payback bonds’ amount on its part that has been reflected in the account of the central bank, said the report.

Of the total bonds under the ownership of the central bank as per the NRB Act 2058 Article 75 (7), the limit of the bonds totals Rs 6.81 billion which is 12.6 per cent of the total revenue collected during the last fiscal year.