Transparency & Accountability Deficit of INGO in Nepal!

INGO’s And Its Role: 

Mission wise there is less difference between INGO and NGO, but INGO has its international scope and has its presence around the world to deal with specific issues in many countries.

Nepal's Treaties & Agreement: what & Why?

DTAA:

What?

With the aim of encouraging Indian investment in Nepal the GON and GOI entered  a double taxation avoidance agreement (DTAA) and a prevention of fiscal evasion agreement in 2011

Why?

Low CAPEX Hurting Growth

Nepal’s capex is much lower than what is required to close the infrastructure deficit said ADB.

The country requires capital spending to reach 8.2-11.8 percent of the gross domestic product (GDP), but it has stood at just 3.3

Watch List

NRB came with a new directive (as on 29-11- 2071) which direct bank and financial institution to add one additional type of loan in their loan category as "Watch List".

BFI will have to classify their loan and advances into five category including "watch list" as new one.

What is "Watch List"?

As per the new NRB directive- A loan having met all the criteria of standard or good loan but showing sign of vulnerability will have to be categorized under a new type of loan i.e. Watch List.

# Pass loan(Not overdue and over due upto 3 month):
Loan and advances whose interest and principal is being paid by the  client on the regular basis or with in the time period of three month is called pass loan. The provisioning requirement for this kind of asset is 1% of total pass(standard) loan

# Watch list:
As explained above it is new category of loan which posses the characteristics of pass loan but carry/shows some amount of potential risk. The purpose of identification of potential NPL is to ensure that timely appropriate corrective steps could be initiated by BFI to protect against the NPL. As per new directive of NRB, BFI from now afterwards will have to maintain 5 % provision for this category of loan. As per NRB directive under below condition loans/advances shall categories under watchlist category:

a) Principal or intrest overdue by above 1 months

b) All Short term or working capital loan pending for renewal & all temporary extension.

c) All those loan which has been categorised under Bad loan

d) Despite of regular payment of interest & principal by Firm/company but suffering loss for two consecutive FY. But the loan provided to project under construction, these arrangements shall be applicable only after commercial production.

e) As per point numbers 33 of NRB directive all multi Banking loan which has not been converted in to consortium financing.

f) All those loner whose cash flow & week operations of the project & which is directed to keep under Watch List by NRB after  supervision

# Substandard Loan(over due by 3-6 month):
Under this category all those loan whose interest and principal remain unpaid for the period of three to six month is regarded as substandard loan. The provisioning requirement for this kind of loan is 25% of total substandard loan.

# Doubtful Loan (overdue by 6-12 month):
Interest and principle remain due up to six to twelfth month of due date is categorized as doubtful loan. The provisioning requirement is 50% of total doubtful loan.

# Loss Loan( overdue by 1 year and above):
Interest and principle remain due up to 1 year and more is termed as loss loan. 100% provisioning is made for this type of loan.

*Performing loan=
Pass loan+ watch list

*Non-Performing loan=
Substandard loan + Doubtful loan + loss loan

Conclusion...

Non performing loan is one of the major issue faced by BFI in nepal. Increasing level of NPL is putting pressure over banking industry of nepal. In this situation this new directive will have some positive impact in lowering the level of NPL in effective way.

Economic Development

Introduction

Development is positive changes in living standard. Development is a continuous and collective process and the aspects of development includes economic, social, political and human.

Improving Reading Habit!

There can be different reason for reading books to different people. We don't require to think much about the reason behind reading books regularly, no doubt this habit has great impact...i remember a quote that "when you are reading you are not alone" this is true because when ever you read a book you visualize which create an image in your mind. I have my own reason behind reading the books that's why I love reading books...How to improve reading habit? Few of you may have this question in your mind so today on this prestigious day of "Sarswati puja" i want to talk about how and why to improve reading habit. This is few tricks which i have applied in myself and believe me this works.

Newspaper:
the first thing you need to do is read news paper every morning. While you are reading make sure you read a bit louder this will improve your speaking skill too.

Comics:
You think your English is poor ?, well reading comics can have great impact. Comics includes different dialogue with picture so if you don't understand the dialogue, picture can be helpful in that case. 

Movie with subtitle:
If you are watching movie make sure that you watch it with subtitle. So reading subtitle has also good impact on improving reading habit.

Library:
visit to the library on the regular basis beside this you can have your own library. Keep the collection of all those book which you love to read.

Environment:
find a quite place for reading. This have great impact on understanding what you read, so make sure you have good environment for reading. Try to avoid disturbing factor.

Read it what you see:
you got a product in your hand read the description of that product, for example if you are hungry and you bought lets say WiWi noodles or any other product, you can read the description given on the wrapper. You can do this on any products like chocolate, biscuit, medicine, manuals etc.

Visualize:
while you are reading you need to visualize it. If you are reading any novel you need to create a visual in your mind, this will help to remember for long. It improves memory power.

Read regularly:
Try to read on the regular basis no matter whether you read for ten minutes or hours... you need to keep on doing this on the regular basis.

Make a Note:
Last but not the least, maintain a proper dairy for what ever you read. Choose the topic you like most and maintain a note own your own. This will improve your writing skill too.

These are few tricks which i have applied with me and its fun. What do you think is this helpful to improve reading habit. Don't forget to leave your thinking on reading books below in the comment section. Thanks

Challenges of Nepalese Economy(Part 2)

Monetary Sector:

Task of extending financial services to village level through financial inclusion and enhancing financial literacy among the general public have remained a challenge.

Challenges of Nepalese Economy(Part 1)

Nepal is facing numerous challenges in the path of economic development. Major constraints hurdles and challenges of economic development facing by Nepal are outlined below:

6 ways to decrease the trade deficit of Nepal

    The country needs to have balance between Export and import, The export-Import ratio should not be too low.The contribution of remittance income, Travel income and Foreign grant is significant in controlling increasing trade deficit of the economy , but these are not going help, these are not the sources which will give double digit growth which needed for vision 2020. following are some most important area where Nepal needs to think and act immediately:

God's Pond... Stop this Extreme Cruelty :(

I wonder what kind of ritual is this? I wonder what kind of fear it is?? Why can’t people understand that GOD never never ask for such kind of sacrifices???. Why can’t people sacrifice their ignorance, their negative thought , their cruelty ???  what is the fault of those helpless animal?????