Approval is also required to draw, accept or negotiate any bills of exchange, promissory notes or loans, if the payee is a person living outside of Nepal. Foreign investors who have received permission to invest in convertible currency are permitted to repatriate the proceeds from the sale of that investment, the profits or dividends from that investment and the principal and interest paid on any foreign loans. One dollar is currently equivalent to approximately 75 Nepali rupees. The rate against the Indian rupee is adjusted periodically. The government has recently decided to permit foreign institutional investors to own up to 25 percent of the shares of listed firms in certain sectors such as hydropower and tourism.
Promoters can sell their shares and repatriate capital.
Banks are only willing to lend short term but will consider loans with terms up to five years. The Government's announced intent to open an export-import bank has not yet been accomplished. There are also numerous bilateral financing and insurance arrangements. The World Bank and the Asian Development Bank are both active in Nepal. Both provide loan and grant financing for public projects and loan financing for local companies.