In 1993, Nepalese were permitted to hold foreign currency accounts in Nepal for the first time. Foreign accounts must be declared and taxes paid. Disinvestment remains subject to GON approval. The first public case of allowed outward investment occurred in 1995 when a local private airline was permitted to invest in a regional air carrier in India. 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 has announced plans to open an export-import bank. Agreements with the United States Export-Import Bank are in place as are MIGA, OPIC, and numerous bilateral arrangements. The World Bank and the Asian Development Bank are active, both taking equity participation and making loans to local companies. The U.S. Export-Import Bank can lend to both the private and public sectors in Nepal but has not had any recent requests for its services.