The Public Debt Management Office (PDMO), operating under the Ministry of Finance, has unveiled the Foreign Employment Saving Bond 2086, offering a lucrative 9% interest rate. With the aim of attracting Nepali migrant workers and returning citizens, this bond initiative targets to raise Rs. 1 billion with a maturity period of five years.
Catering specifically to Nepali migrant workers and non-resident Nepalis, the Foreign Employment Saving Bond 2086 presents an opportunity for investment and financial security. According to the announcement by PDMO, the bond is also accessible to those who have recently returned from foreign employment, encouraging their participation in the country’s economic development.
In a strategic move, the PDMO has taken over the responsibility of raising domestic debt on behalf of the government, a function previously managed by the Nepal Rastra Bank (NRB). By issuing instruments like the Foreign Employment Saving Bond, the government aims to bridge the budget deficit and meet its financial obligations effectively.
As outlined in the notice, Nepali citizens or non-resident Nepalis engaged in foreign employment, and those who have returned within six months, can purchase the bond in their own names or on behalf of immediate family members. The application process, conducted through PDMO’s online platform, is open from May 5 to June 4, 2024, allowing interested parties to apply multiple times within the specified period.
The allocation of bonds is scheduled for June 11, 2024, with interest payments disbursed semi-annually. It’s important to note that tax regulations apply to the earned interest income. The bond denominations range from Rs. 10,000 to amounts divisible by Rs. 10,000, accommodating varying investment capacities.
Furthermore, the notice highlights the tradability of bonds in the secondary market, offering liquidity to investors. Additionally, these bonds can be utilized as collateral in banks and financial institutions for obtaining loans, providing flexibility and financial leverage to bondholders.
With its attractive interest rate and flexible investment options, the Foreign Employment Saving Bond 2086 presents a viable avenue for both investment and financial planning, catering specifically to the needs of Nepali migrant workers and returning citizens while contributing to the country’s economic growth.
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