IFC files application to float local currency bonds

KATHMANDU: 

The International Finance Corporation (IFC), a private sector lending arm of the World Bank, has proposed to issue around $500 million worth of local currency bonds in the country, becoming the first international financial institution to file an application for floatation of Nepali rupee bonds since the government introduced a guideline on it in October.

“Yes, the IFC has filed an application at the Ministry of Finance (MoF) to issue Nepali rupee bonds to raise local currency for relending and to deepen the capital market

IFC, CRO sign pact for online system

KATHMANDU, OCT 13 - 2012

The International Finance Corporation (IFC) of the World Bank Group on Friday signed a memorandum of understanding with the Company Registrar Office (CRO) to implement an online registration system.

The online system is expected to cut paperwork and make documentation for registering companies hassle-free.

Under the project titled ‘Automation Business Process and Reengineering’, IFC is providing technical support worth $500,000. CRO is also investing the same amount.

CRO Registrar Damodar Regmi said work on the project was almost complete, and they aim to launch the service officially from January 2013. “The system will ease the documentation process, especially for people from outside the valley,” said Regmi, adding that the system would also help curb corruption.

Currently, businessmen based outside the valley have to come to Kathmandu to register companies and renew existing companies. Once the online system is implemented, it will allow them to submit their documents online. The system will also allow users to access their company’s status online.

“The system will help CRO reduce the company registration time to around 6 days from the existing two weeks,” said Taneem Ahad, project manager at IFC.

Implementing the online system, CRO also plans to start online payment of registration fees and delay charges, among others. “We are holding talks with banks and financial institutions for the purpose,” said Regmi. There are over 90,000 companies registered with CRO which also looks after the renewing their licenses and transfer ownership of the companies across the country.

Source: The Kathmandu Post

IFC helps Nepal in developing licensing e-portal

KATHMANDU  Aug 27, 2012

IFC, a member of the World Bank Group, has partnered with the government to introduce a business license e-portal, which provides one-stop solution to accumulate information on licensing requirements for conducting different business activities in the country.

The portal, www.licenseportal.gov.np, hosted by the Nepal Information Technology Center, provides a comprehensive inventory of 130 licenses and related information on starting and operating a business in Nepal.

The South Asia Enterprise Development Facility, managed by IFC in partnership with the UK government and the Norwegian Agency for Development Cooperation, is supporting this initiative, states an IFC statement.

“The e-portal will encourage owners of new businesses in remote areas to obtain business licenses, and motivate owners of previously established informal businesses to register, given the new ease of doing so,” the statement quoted Keshab Man Shakya, Minister of Science, Technology and Environment, as saying.

The portal will help Nepali entrepreneurs, including non-resident and foreign investors, to get all official information required to apply for business licenses without having to visit different offices, saving considerable time and money.

“The e-portal will improve government services to businesses, enhance transparency, and create an enabling environment for local businesses to grow and thrive,” said Pavol Vajda, IFC´s Acting Resident Representative in Nepal.

Source: Republica

IFC and ADB propose Nepali rupee bonds

KATHMANDU, JULY 10, 2012

International Finance Corporation (IFC), the private sector lending arm of the World Bank Group, and Asian Development Bank have proposed to issue Nepali rupee bonds to raise funds and finance major infrastructure projects here.

Nepal Rastra Bank (NRB) Governor Yubaraj Khatiwada said the two lenders have proposed issuing Rs 20-billion Nepali rupee bonds—Rs 10 billion each.

Given the country in urgent need for resources to fund long-term infrastructure projects, Khat-iwada said the issuance of bonds would help generate the required funds. Funds raised from the bond issuance will be used in Nepal only, according to Nepali officials.

Nepali banks have long been resisting the temptation of investing in long-term infrastructure projects as the maturity period of their funds does not match with the time infrastructure projects take for generating revenues to repay loans.

Khatiwada said the central bank has ‘cleared the way’ for the bond issuance. He, however, said the Finance Ministry should settle the issue of taxation and issue manager of the bonds.

Both ADB and IFC have also talked to the ministry about the matter, submitting separate proposals. Although ADB made such a proposal a year ago, IFC made its proposal last week, according to the ministry. “We are holding discussions and they have so far been positive,” said Baikuntha Aryal, joint secretary at the ministry, adding he was yet to go through the details of the proposals.

In its proposal, ADB has asked the government to allow it to exchange the proceeds of the Nepali currency bonds for the currency of any another member of ADB without restriction and buy and sell the bonds in Nepal.

ADB has also sought exemption of taxes, including value added tax, transaction tax and stamp duties, among others.

Other conditions put forth by ADB are a confirmation that the tax exemption would apply to any amount payable by ADB or paid to ADB from transactions that may be undertaken in connection with the Nepali currency bonds; such bonds would not be subject to withholding, specifically allowing ADB and its agents to make interest payment to bondholders on gross basis without deduction for any withholding tax; ADB would not be required to disclose its financial transactions to any regulatory authority; and ADB would not require registering the bonds under any security laws and regulation of Nepal.

IFC has also talked with Nepali banks on the scope and the market for Nepali rupee bonds. NIC Bank chief executive Sashin Joshi said the international lender had consulted with them on interest rate and whether such bonds would be accepted here.

He said the move taken by IFC and ADB is positive for the banking industry as local banks could invest their surplus funds in the bonds.

Source: The Kathmandu Post

Govt to register firm, issue PAN from single spot

KATHMANDU, May 19, 2012

Entrepreneurs would soon find themselves free from the need of approaching multiple government offices to get their firms registered and acquire permanent account number (PAN), if things moved on as smoothly as the government has planned.

By just approaching the Company Registrar´s Office (CRO), which is an agency where all businessmen need to visit for registering their businesses, they will be able to list the firm with the tax office and get the PAN while registering the firm itself.

The new arrangement has already been worked out and Inland Revenue Department (IRD) and CRO have already signed a memorandum of understanding to implement it at the earliest, said an official. “We are already in the final stage of implementing this facility,” said Company Registrar Keshav Thapa.

Once in place, the new mechanism will drastically reduce paperwork and hassles for businesses and industries. So far, entrepreneurs first need to register their firms at the CRO and then approach Inland Revenue Office to register the firm with tax and get the PAN.

The new mechanism will reduce the procedures to start a business, which currently comprises 7 procedures, according to International Finance Corporation (IFC).

Likewise, the government is also preparing to launch a licensing electronic portal in a bid to facilitate gathering of information and apply for different types of licenses, permits, related laws and regulations and necessary documents through one window. “We are preparing to launch the portal by the end of May 2012,” said Mahendra Man Gurung, joint secretary at the Prime Minister´s Office.

The government has taken these new initiatives mainly with an aim to project Nepal as easy destinations for doing business, particularly considering Investment Year 2012/13.

Under the reforms aimed at improving Nepal´s performance on Doing Business indicators, which the World Bank Group publishes annually, the government has already reformed registration procedures for approval of licensing and approval of foreign direct investment (FDI) at the Department of Industry.

“Together, these reforms have eliminated seven steps in the FDI approval process,” said Gurung.

Gurung and other officials disclosed these development and unveiled upcoming plans to cut hassles of starting business in Nepal while reviewing implementation of reforms. Office of the Prime Minister and Council of Ministers, Ministry of Industry and Nepal Business Forum Secretariat had jointly held the review workshop this week.

Source: Republica