MBL brings $10m
KATHMANDU: In view of liquidity crunch in the market, Machhapuchchhre Bank Ltd (MBL) has brought in $10 million from Dubai-based Mashreq Bank.
The amount has been brought in based on earlier loan pact signed between the two financial institutions and following approval from Nepal Rastra Bank, as per a media release.
The central bank, through the Monetary Policy for 2019-20, had permitted commercial banks to borrow in foreign currency up to 100 per cent of their tier capital from licensed pension funds, hedge funds and other financial institutions in a bid to ease pressure on shrinking foreign currency reserves, to address the liquidity crunch, and increase credit flow to productive sectors.
MBL plans to invest the amount borrowed from Mashreq Bank in identified productive sectors, including agriculture, energy, tourism, small and medium enterprises, among others.