MAOIST GOVT.TEAM LIKELY TO BE COMPLETED THURSDAY

MAOISTS EXPECTED TO COMPLETE GOVT. LIST THURSDAY

Kathmandu, 1 Sept.: Maoists, heading the government for the second time in 38 months, are expected to finalize their government team Thursday.
Top three leaders are holding consultations to finalize a team amid intensive lobbying by factions for placements in government.
Chairman Prachanda has been empowered to set parameters for appointment of ministers,
Prime Minister Dr. Baburam Bhattarai was finance minister in the first government led by Chairman Prachanda which resigned in nine months following confrontation with President Dr Ram Baran Yadav and Nepal Army.
As in the past while forming coalition governments, differences have surfaced between Maoists and a front of five Madeshbadi parties on control of ‘important and powerful ministries’.
A two-member cabinet hasn’t been expanded five days after installation of a small cabinet.
There are differences in the front of Madeshbadi parties as well.
Two rounds of inconclusive talks were held at the residence of TMLP Chairman Mahanta Thakur until late Wednesday night to resolve the differences.
The five parties have greed in principle only on sharing the number of ministries only.
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NC FAVOURS 5,000 MAOIST FIGHTER INTEGRATION

Kathmandu, 1 Sept. Main opposition NC has suggested integration of only 5,000 former fighters in state security agencies, including Nepal Army.
NC opposes mass integration.
The party had earlier suggested integration of 4,000 fighters.
This was announced by parliamentary party (PP) leader Ram Chandra Paudel Wednesday.
Maoists have suggested integration of 7,000 former PLA fighters.
A 12-point New Delhi accord between them Maoist rebels and seven parliamentary parties mentions integration ad resettlement in principle without specifying numbers—compounding a dispute on integration.
Parties claim agreement on numbers between Girija Prasad Koirala and Chairman Prachanda; but the number hasn’t been codified.
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35 ACCUSED IN SUDAN SCAM SUMMONED BY SPECIAL COURT

Kathmandu, 1 Sept. Thirty-five accused in the Rs.280 million Sudan scam have been summoned by the special court Thursday.
Thirty-four senior Nepal Police (NO) officers, including three IGPs, and a Nepali contractor have been summoned.
The contractor was charged for supplying defective armoured personnel carriers to NP peacekeepers with UN in Sudan.
Another contractor ignored summons to present himself personally at the court.
Some police officers charged by CIAA have been cleared by the court.
The court is expected to fix date for hearings in their presence.
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FRANCE HOPES DR BHATTARAI ELECTION WILL HELP END PEACE PROCESS

Kathmandu, 1 Sept.: France hopes election of Prime Minister Dr. Baburam Bhattarai will help complete the peace process:
”France welcomes the election of Dr. Bhattarai as the prime minister of Nepal.
:With the extension of the mandate of the Constituent Assembly, this election will allow the establishment of a stable and sustainable government action, able to meet the challenges faced by Nepal’s young democracy, the first of those being completing the peace process,’ a French foreign ministry statement said.
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SPECIAL COMMITTEE TO MEET THRICE A WEEK

Kathmandu, 1 Sept. Special committee for integration, resettlement of 19,000 plus former Maoist fighters will now meet thrice a week to hasten the process, Maoist military leader Barsha Man Pun, who is also committee member, said.
Prime Minister Dr. Baburam Bhattarai chaired the first committee under him Wednesday to push the delayed processes.
Maoists are handing over keys of containers with weapons verified by UN to the special committee Thursday
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IOC AGREES TO GAS SUPPLY
DECISIONwascommunicated Wednesday.



LIBERAL MARGIN LENDING FAILS TO BOOST INVESTOR CONFIDENCE

Kathmandu, 1 Sept.: Low dividend declaration by highly-rated banks and high interest rates is repelling investors from the stock market, spreading the gloom already running deep in the market, Republica reports.

Currently, daily turnover at Nepal Stock Exchange (Nepse) stand at less than Rs 20 million, far lower than the daily average of Rs 40 million last year, when the market was not performing well.

Stock analysts had anticipated the market to pick up, particularly after Nepal Rastra Bank (NRB) relaxed provision on margin-type lending and allowed banks to decide on margin call. The government had also promised large scale investment from public sector entities.

“Sadly, returning to the days market recorded turnover of as much as Rs 120 million a day seems impossible now,” said Rabindra Bhattarai, a share analyst.

Nepse index has consistently hovered between 300-400 points over the last three months.

Although NRB this week liberalized the margin lending regime further, allowing banks to renew loans issued against the collateral of shares, analysts still rule out the possibility of market regaining confidence.

“What market needs at this juncture is huge investment. Unless the government comes up with the ways to ensure that, we don´t expect the market to revive,” Bhattarai added.

Though investors welcomed the central bank´s latest relaxation of renewal of margin lending, they said the market simply lacked positive outlook to lure new investment. They say dividends announced by leading banks and financial institutions -- major players and milking cow in the stock market -- were lower than the last year.

“Investors feel that the rate of return on share investment has dipped than the past, whereas interest rate on margin lending (investment) has gone up,” said Bhattarai.
Currently, banks are offering interest return of 8 percent to 12 percent on deposits, whereas they are slapping interest rate of up to 16 percent on margin lending. The stock market, on the other hand, is presently plagued by low rate of return compared to other sectors.

Records show even the best performing banks like Nabil Bank have announced only 30 percent dividend, which is far lower from 70 percent announced last year. This disappointed investors, who were expecting attractive dividend after suffering huge loss in share prices over the year.

“Low dividend announcement has dampened investors´ confidence. No wonder the stock market is fast losing new investment,” said Nanda Kishore Mundada, immediate past president of Stock Brokers´ Association Nepal (SBAN).

Talking to Republica, Mundada also viewed the NRB´s latest relaxation of margin lending would not rejuvenate the stock market as big investors - the major players - have already sold out their large number of shares.

“Margin lending relaxation came very late. Major investors have already sold their large share holding amid scarcity of loans,” added Mundada.

Given the situation, Mundada says the government should immediately enact Central Depository Service (CDS) Regulations and facilitate entry of investment of Non-Resident Nepalis (NRNs) to give new impetus to the market.

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EPS quotas
OM ASTHA RAI
KATHMANDU, Sept 1: Nepal has started lobbying for an additional 2,000 employment quotas in South Korea.

If the Ministry of Labor and Transport Management (MoLTM) succeeds in persuading the Human Resource Department (HRD) of South Korea into sanctioning more employment quotas in the agricultural sector, over 17,000 Nepali workers may get jobs under Employment Permit System (EPS) within the next two years.


South Korea has allocated only 15,298 quotas -- 13,298 in production and 2,000 in agriculture sector -- to Nepal for this year. Of the total 50,043 workers who appeared in Korean language test held in July, 17,298 workers, including those in the waiting list, have passed the exams.

“Although South Korea has allocated only 2,000 quotas in agriculture sector, we have published the names of 4,000 Nepali workers, half of them in the waiting list, assuming that all of them would not want to take up agricultural works,” Krishna Hari Pushkar Karna, assistant spokesperson for the MoLTM, said.

“But, as it appears now, almost all of them are willing to work even in the agricultural sector. Therefore, we have asked South Korea to add 2,000 more quotas so that we will be able to send all 17,000 workers, including even those in the waiting list,” Karna added.

This is the third time Nepal has asked South Korea to add employment quotas. Initially, South Korea had sanctioned only 7,100 quotas for Nepal.

Highly impressed by Nepali workers" discipline and dedication, South Korea increased the previously sanctioned quotas to 10,100. As Nepal again asked for more quotas, citing the high number of EPS job aspirants, South Korea allocated 15,298 quotas.

The number of EPS quotas provided to Nepal is higher than that of any other country. South Korea has been hiring workers under EPS from 15 developing countries including Nepal.

“Although we have been corresponding to South Korea for more quotas for quite some time now, our lobbying has not been effective,” Karna said, adding, “We could have lobbied for this more effectively if we had a labor attaché in South Korea.”

Though the Ministry of General Administration had sanctioned the posts of labor attaché for South Korea and Kuwait and the Ministry of Finance has allocated the required budget, the MoLTM has yet not sent labor attachés there due to the delay by the Ministry of Foreign Affairs in giving its final nod.

Nepal had signed an agreement with South Korea in 2004 to send workers under EPS. Over 8,000 Nepali workers have already reached South Korea under the EPS. A Nepali worker earns Rs 70,000 on an average in South Korea.

Korean jobs have become hugely popular among Nepali workers largely due to the fairness of the EPS process.
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