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Finance Ministry Presents New Regulation Related to Hedging in Cabinet

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Finance Ministry Presents New Regulation Related to Hedging in Cabinet
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February 24: The Ministry of Finance has presented Hedging-related Regulation 2078 to the Council of Minister for approval. The government decided to prepare a new draft of regulation related to hedging after the regulation prepared three years ago was not much effective.

Finance Secretary Madhu Kumar Marasisi confirmed that the ministry prepared the new regulation in consultation with the Nepal Rastra Bank and has already presented it before the cabinet.

According to him, the new regulation has been presented before the cabinet after amending many provisions in the previous regulation.

The new regulation proposes hedging facility for health institutions, educational institutes, agriculture, tourism and IT sector companies as well as industries and urban development infrastructures with more than Rs 2 billion investment. It also has provision for green investment projects to enjoy hedging facility, which was not included in the previous regulation.

Earlier, only the central bank and Finance Ministry were responsible for hedging but now even Infrastructure Development Bank and commercial banks can bear such responsibilities.

The previous regulation had proposed hedging facility for Monorail and Metrorail covering more than 10 kilometers distance but now even the projects covering 5 kilometer distance can benefit from hedging.

The new regulation has also proposed the timeframe during which projects can enjoy hedging facility. Earlier, the hedging period was only of 5 years but now it has been extended up to 20 years depending on the nature of the projects.

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