Loan and Guarantee Act, 2025(1968)

What does it do?

• The Act gives the Government of Nepal the legal authority, required by the Constitution, to borrow and to give guarantees. The government may borrow foreign currency from foreign governments or international and foreign agencies for approved development plans, up to a total outstanding amount set in the Act (the consolidated text reads 'sixteen kharba rupees', i.e. Rs 1,600 billion; only amounts actually drawn and still unpaid count). Repayments of principal and interest are a charge on the Consolidated Fund or other government funds.कानूनबमोजिम बाहेक नेपाल सरकारले ऋण लिन र जमानत दिन नपाउने संवैधानिक व्यवस्थाअनुसार यो ऐनले ऋण लिने र जमानत दिने अधिकार दिन्छ। नेपाल सरकारले स्वीकृत विकास योजनाका लागि विदेशी सरकार वा अन्तर्राष्ट्रिय तथा विदेशी एजेन्सीबाट ऐनमा तोकिएको कुल सीमा (एकीकृत पाठमा 'सोह्र खर्ब रुपैयाँ') ननाघ्ने गरी विदेशी मुद्रामा ऋण लिन सक्छ; तिर्न बाँकी रकम मात्र ऋण मानिन्छ। ऋणको साँवा र ब्याज सञ्चित कोष वा अन्य सरकारी कोषमाथि व्ययभार हुन्छ। Ministry of Law, Justice and Parliamentary Affairs (moljpa.gov.np), consolidated text Preamble, PDF p. 2; Section 3(1)–(2) and explanation, PDF p. 3
• The government may guarantee loans from foreign governments, agencies or other institutions to organisations carrying out projects in approved development plans, or to Nepal Airlines Corporation for buying new aircraft. Before guaranteeing, it must consider why the loan is needed, the national interest and whether the borrower can repay on time. A guaranteed borrower may not revalue or reduce its capital without prior approval and must follow government directions.नेपाल सरकारले स्वीकृत विकास योजनामा समावेश आयोजनाका लागि वा नेपाल वायुसेवा निगमलाई नयाँ हवाईजहाज खरिद गर्न विदेशी सरकार, एजेन्सी वा अन्य संस्थाबाट लिइने ऋणमा जमानत दिन सक्छ। जमानत दिँदा ऋण लिनुपर्ने कारण, राष्ट्रिय हित र समयमै साँवा–ब्याज तिर्न सक्ने क्षमता विचार गर्नुपर्छ। जमानतमा ऋण लिने संस्थाले पूर्वस्वीकृतिबिना आफ्नो पुँजीको पुनर्मूल्याङ्कन गर्न वा पुँजी घटाउन पाउँदैन र नेपाल सरकारको निर्देशन पालना गर्नुपर्छ। Ministry of Law, Justice and Parliamentary Affairs (moljpa.gov.np), consolidated text Section 4(1)–(3), PDF pp. 3–4
• If a guaranteed borrower is dissolved or likely to be, the government may freeze its property to recover the guaranteed amount plus interest, and its claim comes before anyone else's. If the borrower cannot repay, the unpaid principal or interest becomes a charge on the Consolidated Fund. The government charges a guarantee commission at a rate notified in the Nepal Gazette, which it may reduce or waive.जमानतमा ऋण लिने संस्था विघटन भएमा वा हुने सम्भावना भएमा नेपाल सरकारले त्यसको जायजेथा रोक्का गरी जमानत दिएको रकम र ब्याज असुल गर्न सक्छ र सो रकम असुल नहुँदासम्म अरू कसैको दाबी लाग्दैन। संस्थाले ऋण तिर्न नसकेमा बाँकी साँवा वा ब्याज सञ्चित कोषमाथि व्ययभार हुन्छ। जमानतबापत नेपाल सरकारले राजपत्रमा सूचना प्रकाशित गरी तोकेको दरमा कमिसन लिन्छ र त्यसमा छुट वा मिनाहा दिन सक्छ। Ministry of Law, Justice and Parliamentary Affairs (moljpa.gov.np), consolidated text Section 4(4)–(7), PDF p. 4; Section 5, PDF p. 5
• Every loan or guarantee agreement made under the Act must be laid before the Federal Parliament as soon as possible. The Act repealed the Loan Act, 2017.यो ऐनबमोजिम नेपाल सरकारले लिएको ऋण वा दिएको जमानतको सम्झौता यथाशीघ्र सङ्घीय संसद्समक्ष राख्नुपर्छ। यस ऐनले ऋण ऐन, २०१७ खारेज गरेको छ। Ministry of Law, Justice and Parliamentary Affairs (moljpa.gov.np), consolidated text Sections 6–7, PDF p. 5
• Section 29 of the Public Debt Management Act, 2079 repealed both this Act and the National Debt Act, 2059; actions taken under them count as taken under the 2079 Act. The points above describe this Act as it stood before repeal.सार्वजनिक ऋण व्यवस्थापन ऐन, २०७९ को दफा २९ ले यो ऐन र राष्ट्र ऋण ऐन, २०५९ दुवै खारेज गरेको छ; यिनअन्तर्गत भएका काम सोही ऐनबमोजिम भएको मानिन्छ। माथिका बुँदाले खारेजीअघिको व्यवस्था देखाउँछन्। Nepal Law Commission, Government of Nepal Public Debt Management Act 2079, Section 29(1)–(2), PDF p. 12

Gaps, loopholes and improvement ideas

None documented in the official reports we have reviewed so far.

Where does it conflict with other laws?

No conflict with another law is documented in the sources we have reviewed so far.