August 2: The government is preparing to raise internal debt of Rs 240 billion in the current fiscal year, starting from August.

Nepal Rastra Bank has published the schedule for collection of internal debt collection from August 3.

The government had announced through the budget to raise internal debt of Rs 240 billion this year. Accordingly, the central bank has prepared a schedule to collect Rs 179 billion by issuing development bonds, Rs 55 billion from treasury bills, Rs 5 billion from citizen savings bonds and Rs 1 billion from foreign employment savings bonds.

According to the schedule, Rs 55 billion each will be raised in the first and second quarters, Rs 53 billion in the third quarter and Rs 77 billion in the fourth quarter of the current FY.

Currently, there is plenty of liquidity in the banks and the interest rate is low, so the interest rate of the government's internal debt will be cheaper.

The interest rate of the treasury bills, which exceeded 12 percent last year, is around 6 percent this year. Nepal Rastra Bank plans to raise Rs 55 billion from treasury bills in the first quarter, Rs 10 billion in the second quarter, Rs 15 billion in the third quarter and Rs 5 billion in the fourth quarter.

Development bonds worth Rs 50 billion will be issued in the first quarter, Rs 45 billion in the second, Rs 35 billion in the third and Rs 49 billion in the fourth.

Similarly, Rs 5 billion will be collected from citizens' savings bonds in the third and fourth quarters. The Central Bank is also planning to issue foreign employment savings bonds worth Rs 500 million each in the third and fourth quarters.

According to the data of the Public Debt Management Office, Nepal’s public debt is Rs 2221 billion as of as of last year, including Rs 1128 billion in internal debt and Rs 1093 billion external loans.