August 20: The government has initiated the process of sovereign rating or the independent assessment of the creditworthiness of the country to address the problem of difficulty in attracting foreign investment.
Sovereign credit ratings can give investors insight into the level of risk associated with investing in the debt of a particular country, including any political risk, states Investopedia.
The government took this initiative last week by forming the Rating Oversight Committee headed by Revenue Secretary Lal Shankar Ghimire at the Ministry of Finance.
Nepal Rastra Bank’s Deputy Governor Chintamani Shivakoti, Insurance Board’s Chairman Chiranjivi Chapagain, Securities Board of Nepal’s Chairman Rewat Bahadur Karki and Suman Raj Aryal of the Central Department of Statistics are the members of the committee.
According to informed sources, Standard Chartered Bank has been helping the government for the rating.
It has also been learnt that British aid agency DfID has shown interest to fund the government for the rating.
The committee has set a target to complete its task of rating the country within five months.
“We will select one of the international companies for the rating process. We are considering to select one among Moody’s, Fitch and Standard and Poor,” said a member of the committee requesting anonymity.