KATHMANDU:- The Public Debt Management Office has released two savings bonds for sale to raise government debt. The Office has issued ‘Citizen Savings Bond-2087’ worth Rs 2.5 billion and ‘Foreign Employment Savings Bond-2087’ worth Rs 500 million.
Applications can be submitted for the purchase of both these savings bonds with a five-year term until December 11. The annual interest rate for the citizen savings bond will be 6.5 percent and for the foreign employment savings bond it will be 7.5 percent.
The interest on the savings bond will be paid to the bank account of the concerned buyer every six months, and the minimum of Rs 10,000 and a maximum of total amount released divided by Rs 10,000 can be purchased.
Citizen savings bonds can be purchased by Nepali citizens and non-resident Nepali citizens. Similarly, foreign employment savings certificates can be bought by Nepali citizens and non-resident Nepalis who are engaged in employment outside the country or have returned from employment outside the country for six months. Applications can be made for the purchase of savings certificates through the DOMS system and investor portal operated by the Public Debt Management Office.
Prakash Pudasaini, Deputy Secretary of the Public Debt Management Office shared that applications worth Rs 800 million have been received for citizen savings certificates in the last four days alone. According to him, the savings bonds will be issued on a first-come-first basis.
“There is a mandatory provision that banks and financial institutions must buy savings bonds in the secondary market, which is easily transacted and can be sold at any time by the holder of the bonds. Therefore, savings bonds can be converted into liquidity immediately. Hence, the bonds purchased by the holder can be sold immediately at any time,” Pudasaini said. It can also used as collateral to acquire loan from banks and financial institutions.