Following a Supreme Court decision to lift an interim order, Nepal Rastra Bank can now proceed with external audits of 10 major commercial banks through foreign auditors, fulfilling conditions set by the IMF for extended credit facilities.
Nepal Rastra Bank has been given the green light to conduct external audits of 10 major commercial banks. This development comes after the Supreme Court ruled that the interim order related to the auditing issue would no longer continue, removing the legal barrier for the central bank.
On Asar 9, the bench comprising Justice Dr. Manoj Kumar Sharma and Nirpadhwaj Niraula decided against extending the interim order, allowing Nepal Rastra Bank to move forward with the audit process. Earlier, in Poush 2078, Nepal Rastra Bank had invited letters of intent from interested foreign auditors to review the loan portfolios of Nepal’s commercial banks. Among the candidates, Bangladesh’s ‘Howlader Yunus Company’ was selected. However, this selection was challenged by another company, ‘Mehra JKSS SSBIDI,’ through a writ petition.
As per the International Monetary Fund’s (IMF) conditions, Nepal Rastra Bank is advancing audits of the 10 largest banks that have extended significant loans through foreign auditors. The Nepal government and Nepal Rastra Bank had committed to conducting these international audits as a precondition for receiving an extended credit facility from the IMF. The IMF had stipulated this requirement as part of the Extended Credit Facility (ECF) for disbursing USD 395 million.
This article was originally published on bajarkochirfar.com. Translated with the help of AI and reviewed by our editorial team.
