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Nepal’s sovereign debt exceeds Rs 2400 billion

Kathmandu: Nepal’s sovereign debt has exceeded Rs 2400 billion as of mid-June 2024. According to the Public Debt Management Office, Nepal is obliged to pay its public debt amounting to Rs 2400 billion including Rs 1192.48 billion towards the internal debt and Rs 1207.86 billion towards the external debt as of mid-June, 2024.

Nepal’s debt was Rs 2299.35 billion until mid-July last year when the current fiscal year 2023/24 began. The public debt amounting to Rs 101 billion was added to the country’s debt portfolio in the last 11 months of the current fiscal year, it was shared.

Of the total sovereign debt incurred to the country so far, the internal debt accounts for 49.68 per cent while the external one constitutes 50.32 per cent.

Similarly, the government owes sovereign debt over Rs 1071 billion to the multilateral lenders and Rs 136.74 to the bilateral lenders under the external debt.

The liability of development bonds is the highest under the internal debt over Rs 764.94 billion. The liability of the Treasury Bill stands at Rs 412.69 billion.

The government had set a target of raising Rs 452.75 billion in loans in the current fiscal year out of which Rs 240 billion was aimed to be collected through internal loans and Rs 212.75 billion through external loans. 

The government has collected Rs 225 billion internally and Rs 82.67 billion externally as of mid-May of the current fiscal year. It is 67.96 per cent of the annual target.

Office Chief Dirgha Raj Mainali shared that of the target amount, Rs 145 billion remains to be collected.

The government in the current fiscal year had allocated Rs 225.17 billion to pay the principal amount of the debts and Rs 225.17 billion was allocated to pay the interest amount of the public debt out of which Rs 197.32 billion has been paid off as the principal amount and Rs 31.52 billion as an interest, said the Public Debt Management Office.