NC DISTRICT PRESIDENTS MEET IN BAHARABISHE MONDAY Kathmandu, 30 July: Main opposition NC’s two-day meet of all 75 district committees begins in Baharabishe Monday. The meeting will discuss broad range of issues including its strategy, national elections announced by government , ways to end a deadlock , ways to end internal party dispute and other issues. The presidents meet ahead of an assembly of secretaries in Pokhara.. All 75districts chiefs are participating in the meeting for which preparations were completed Sunday. nnnn PM TO ADDRESS QUERIES OF RADIO NEPAL LISTENERS MONDAY EVENING Kathmandu, 30 July: Prime Minister Baburam Bhattarai will answer queries of Radio Nepal listeners over state radio at 8.10 in the evening Monday. The premier launched public relations programme after his installation 11 months ago. nnnn PROTEST IN RAJBIRAJ AGAINST CHINESE OPPOSITION TO FEDERAL STRUCTURE Kathmandu, 30 July: United Madesh Front Sunday held a demonstration in Rajbiraj Sunday against Chinese concern against federalism, Nagarik reports from the terai town. Beijing’s concern was expressed at a meeting with CPN Maoist Chairman Mohan Baidhaya who has just concluded a China visit. China says a federal structure will split Nepal and directly opposed a One Madesh, One Pradesh in terai bordering India. nnnn . CPN MAOIST EASTERN CHIEF BISHWAKARMA AGAINST GOVT. PERKS MAINLY TOP PARTY LEDERS WHO HELD TOP GOVT. JOBS Kathmandu, 30 July:: CPN-Maoist Eastern Regional in-Charge Khadga Bahadur Bishwakarma has said the government's decision to provide state facility to its former senior officials is against the people's sentiments, RSS reports from Mangalbare.. Speaking at a news conference in Ilam this morning, he accused the government of misappropriating the state coffers in the name of providing facilities to dignitaries rather than focusing on people's desires and needs. An interim government should be formed and a roundtable conference be held to give the nation a way out to the existing political crisis, opined Bishwakarma. It is not good to propose CA reinstatement in the present situation of the country, he said, adding that his party would not take part in the elections announced without political consensus. Now the country has plunged into a grave crisis and the Nepali Congress and the CPN (UML) should realise this and unite to prevent the nation from seeing further crisis, he said. The CPN-Maoist leader further claimed that the integration of the Maoist former fighters was against the agreement and the government became a failure due to such violation of the agreement. Nnnn MEDIA GOOGLE ‘… with the UCPN-Maoist, Chand said that his party could unify provided both Puspha Kamal Dahal and Baburam Bhattarai accept Mohan Baidhya's leadership and his ideology. Stating that the UCPN-Maoist had betrayed thePeople's Liberation Army, Chand accused Dahal of embezzling massive amount of fund released in the name of PLA combatants from the state coffers.” (CPN Maoist General Secretary Netra B.Chand, The Himalayan Times. 30 July) "The meeting concluded that the prime minister´s move contravenes the constitution and that it is just a ploy to prolong his stay in power. "We have concluded that the prime minister should withdraw the ordinances and vacate Baluwatar [the prime minister´s official residence] so as to create an environment conducive to ending the ongoing political stalemate.” (Ramnath Dhakal , Secretary UML parliamentary party department, Republica, 30 July) . ‘Bhattarai who dissolved constitutional assembly secretly has no right to declare another election constitutionally and politically.” (CPN Maoist General Secretary Ram Bahadur Thapa, Nagarik, 30 July) nnnn Nnnn BANK LENDING UP 41.5 PERCENT; COLLECTION GROWTH 367.7 PERCENT Kathmandu, 30 July:: Lending of commercial banks leapt by 41.5 percent in the first 11 months of last fiscal year, despite posting a whopping 367.7 percent growth in deposit collection in the same period, latest report of Nepal Rastra Bank (NRB) shows, Republica reports. A total of 32 commercial banks extended Rs 74.21 billion in credit to various sectors in the 11-month period to mid-June, in contrast to deposit mobilization of Rs 138.84 billion in the same period. In the same period of fiscal year 2010/11, commercial banks had extended Rs 52.44 billion in loans and collected Rs 29.68 billion deposits. The discrepancy in deposit and credit expansion shows that banks are currently sitting on a mountain of cash, much of which has not been utilized. It is said the banking system currently has a liquidity of around Rs 100 billion. But due to tepid credit growth, triggered by slowing productive sector, most of the financial institutions are only paying interest on the parked cash, which is putting pressure on their net earnings. “The investment climate in the country is not promising, which has brought down the demand for loans,” Rajan Singh Bhandari, CEO of Citizens Bank, said. “Had it not been for few sectors like hydropower and industries like cement and steel plants, it would have been difficult for banks to post 41 percent lending growth.” The NRB report shows that basic iron and steel plants consumed Rs 6.01 billion in loans, while cement industries took away credit of Rs 4.41 billion in the 11-month period, up 29.2 percent and 36 percent, respectively. Credit growth in these sectors pushed up lending to the production sector by 22.8 percent to Rs 26.25 billion, or 35 percent of the total loans extended by commercial banks. However, in terms of growth, agriculture sector topped the list, with credit flow rising by a hefty 60 percent to Rs 8.5 billion during the period. Many bankers say the credit to the agri sector has gone up in the recent period because of the central bank´s mandatory provision that requires all banks and financial institutions to extend at least 10 percent of the total loan to agricultural and energy sectors. But they also say their balance sheets do not show the level of growth reflected by the central bank report. Earlier, bankers had urged the central bank to launch an investigation into the matter as they fear cases of reclassification to meet the standard set by the central bank. Among others, wholesale and retail traders took away Rs 14.8 billion in loans, a hike of 13.6 percent, construction sector secured Rs 8.97 billion in credit, a rise of 17.4 percent, and service sector consumed Rs 6.66 billion in loans, a rise of 18.3 percent. nnnn BANGLADESH AGREES TO ZERO TARIFF FOR NEPALO AGRO PRODUCTS Kathmandu, 30-July: Bangladesh - one of the few countries with which Nepal enjoys trade surplus -- has agreed to provide zero-tariff facility to Nepali agriculture products such as lentils and tomato, Bhojraj Pokhrel writes in Republica. According to Commerce Secretary Lal Mani Joshi, Bangladesh unilaterally announced to provide zero-tariff facility to Nepali agricultural products at a bilateral meeting held on Sunday. “High-level Bangladeshi officials agreed to provide zero-tariff facility on Sunday. However, formal agreement to this effect will be signed on Monday,” Joshi said. Nepal had been requesting for such a facility for more than a decade. It had been failing to secure the facility mainly Bangladesh was expecting similar treatment for Nepal. But it hadn´t materialized as bilateral treaty between Nepal and India bars Nepal from providing equal or more favorable tariff treatment to any third country. “Bangladesh has finally understood our position and agreed to grant zero-tariff facility unilaterally,” Joshi said, adding, “It is a great achievement as it might help us fined a new market for our agricultural products.” The Nepal Trade Integration Strategy (NTIS) - a blueprint to boost export - has identified Bangladesh as third major destination for ginger. The meeting, however, could not reach to an agreement on operation modality for transit route. “We are close to forging an agreement on the issue. But we won´t sign it now,” Joshi said, adding, “We will hand over the draft agreement to a technical committee. That committee will pave the way for us to sign the pact.” Nepal and Bangladesh had okayed the draft of the operation mechanism of transit route during the commerce secretary-level talks held in Dhaka in 2010. Once signed, it will pave the way for Nepal to use Mongla and Chittagong ports for international trade. It will also resolve problems faced by traders on the overland transit route of Kakarvitta-Fulbari-Banglaband. However, traders doubt smooth operation of this land route as India has not improved the roads conditions and eased movement of transit traffic along the Kakarvitta-Fulbari and Fulbari-Banglaband segments of the route. Meanwhile, officials also held discussions on problems faced by traders from both the countries. Nepal´s exports to Bangladesh presently stand around Rs 3.3 billion, whereas imports from Bangladesh stand at around a billion rupees nnnn ________________________________________ PM PRESSURIZES PRESIDENT TO SIGN ELECTION ORDINANCES Kathmandu, 30 July: Singha Durbar and Shital Niwas are yet again on a collision course -- thanks to the two ordinances that the Cabinet moved to the President's Office on Friday. While political pundits and legal experts engage in passionate bi-partisan debate over whether the Head of State should approve the ordinances, the President's Office could take some time before deciding, Ananta Raj Luitel writes in The Himalayan Times. "It depends whether these ordinances are within the purview of the Constitution," Rajendra Dahal, Press Adviser to the President told The Himalayan Times today. "If the ordinances meet constitutional parameters, the President will be compelled to approve them," he added. Dahal said it would be some days before the President took a decision. President Yadav has already okayed ordinances on Mutual Legal Assistance and Extradition Treaty, facilities to former bigwigs and the budget for the current fiscal year following the dissolution of the CA. The government forwarded Constituent Assembly Election Ordinance and General Revisions and Amendment to Election Ordinance to the President on Friday. Lawyers claim that the President is not compelled to issue the ordinance but he can test its constitutionality. Attorney General Mukti Narayan Pradhan, however, said since the President did not have executive powers, he could not reject recommendations of the Cabinet. Minister of Physical Planning and Works Hridayesh Tripathi said, "The government decided to send the ordinances to the President, as they were necessary whether the elections for CA are held on November 22 or any other date," he said, adding, "Even the constitutional provisions regarding elections would have to be amended through ordinances." Former PM and senior leader of UML Madhav Kumar Nepal urged the President to reject the ordinances. "The government is against the Constitution and it did not even feel the urge to forge consensus," he added. Dr Ramsharan Mahat, a senior Nepali Congress leader, however, blamed the government for justifying its illegal decision to hold elections in such a situation. "The President must reject the ordinances, as it could not forge consensus," he added. Deputy Prime Minister and Vice-Chairman of UCPN-Maoist Narayan Kaji Shrestha said the Interim Constitution did not envision a situation of rejection by the President. "Neither the government nor the party has ever thought about such a situation," he added. "It would be unfortunate if the President did so. It is not even certain that the promulgation of the ordinance can ensure election." Nnnn REAL SECTOR FIRMS FAIL TO ATTRACT INVESTORS Kathmandu, 30 July: The Nepali capital market keeps pining for more real sector companies even though the stocks of the existing real sector companies fail to charm Investors, The Himalayan Times reports. Trading of real sector stocks listed at Nepal Stock Exchange (Nepse) under the heading of manufacturing, trading and hotels, comprises of about 0.16 per cent of the total shares listed under those subgroups. There are more than 86 million unit shares of the 26 companies listed under the three subgroups at Nepse. In the last 90 days, only 141,408 million unit shares belonging to these companies were traded. Likewise, among the 26 companies, shares of only nine companies were traded in 2012. Among the real sector companies listed at Nepse, four hydropower companies and Nepal Telecom are the only companies that see their shares trade regularly. The capital market regulator and Nepse have been trying to attract more real sector companies to get listed, blaming the dominating presence of financial intermediaries for the poor performance of the market as a whole. “The increasing number of real sector companies is not enough for diversification of the stock market if the performance of the real sector companies remains poor, discouraging investors,” pointed out share analyst Rabindra Bhattarai. “The regulators need to focus on listing quality companies instead of on the number of companies because when Nepse was established real sector companies had outnumbered financial institutions but now most of them have disappeared,” he added. Among the listed real sector companies, shares of Unilever Nepal, Bottlers’ Nepal, three listed hotels and Bishal Bazaar Company were traded in the last three months. Relative lack of transparency and minimal dividend distribution by real sector companies is a big turn off for investors. “Financial institutions, insurance companies and telecommunication companies have strong regulators keeping a tab on them, but manufacturing companies lack that and are not big on transparency as well, so investors have a hard time trusting them,” said Bhattarai who is also president of Securities Research Center and Services. Most companies prefer raising capital by borrowing from financial institutions instead of offering shares to the public as disadvantages of getting listed outweigh benefits. The government has even announced in the budget for the current fiscal year that companies who get listed at the stock exchange will be entitled to a 10 per cent tax discount as an incentive. The regulator — Securities Board of Nepal (Sebon) — had proposed an incentive package for diversified companies to get listed to be announced in this fiscal year’s budget but due to the partial announcement it has been postponed, said chairman of Sebon Baburam Shrestha. “Though we want more real sector companies to issue shares to the public, Securities Board of Nepal will only approve the public issue of companies that have good future prospects — both financially and in terms of corporate governance — to save investors from losing money to fly-by-night companies,” Shrestha added. Nnnn NEPALI-SPEAKING DISPLACED FROM ASSAM Kathmandu, 30 July: One hundred Nepali-speaking persons have been displaced in communal clashes in Assam between Bodos and Muslims, Rabeti Raman Sapkota reports in Nagarik. They have moved for security Chirai district and are being looked after at abuilding of a lower security school. nnnn