Nepal has raised internal debt for the fist time amounting to Rs.13.7 million in 1963/64. Nepal government raised internal debt by issuing treasury Bills, Development Board, National Saving Certificate, and Special Bonds. Treasury bill is a short term debt instrument whereas Development Bond; National Saving Certificate are the long term debt instruments. The Treasury Bill has maturity of 3 months whereas Development Bond, national Saving Certificate has the maturity of 5-7 years.
In 1979. HMG had raised the internal debt amounting to Rs.415.0 million in this year treasury Bills were nil whereas the Development Bonds amounted for 66.9% and special Bonds amounted for 33.1% of the total internal loan. In 1995, HNG had raised the internal debt of Rs.29,471.0 million. Of the total amount, the share if Treasury Bills was 21.7% whereas the share of National Saving Certificate and Development Bonds was 20.6% and 8.4% respectively.
As the ownership pattern of Treasury Bills, in 1995 of the total amount of Rs. 6392.5 million the share id Nepal Rastra Bank was 22.1%. As to the ownership pattern of HMG bonds call in 1995 of the total amount of Rs. 24471.0 million, the share of Nepal Rastra Bank was 53.4% commercial banks 16.7% and Provident Fund Corporation 12.5%.
Friday, June 11, 2010
RECESSION
Recession starts when there is a downward descends from the peak, which is of a short duration. It marks the turning period during which the forces that make for contraction finally win over the forces of expansion. Its outward signs are liquidation in the stock market strain in the banking system and some liquidation of bank loans, and the beginning of the decline of prices. As a result profit margin decline further because costs start overtaking process. Some firms close down, other reduce production and try to sell out accumulated stocks. Investment, employment, income and demand decline. This process becomes cumulative.
Recession may be mild or severe. The latter might lead to a sudden explosive situation emanating from the banking from the banking system or the stock exchange and a panic or crisis occurs. When a crisis and more particularly a panic, does occur, it seems to be associated with a collapse of confidence and sudden demands for liquidity. This crisis of nerves may itself be occasioned by same spectacular and unexpected failure. A firm or a bank or a corporation announces its inability to meet its debts. This announcement weakness other firms and banks at a time when ominous signs of distress are appearing in the economic structure, moreover it sets off a wave of fright that culminates in a general run of financial institutions.
Recession may be mild or severe. The latter might lead to a sudden explosive situation emanating from the banking from the banking system or the stock exchange and a panic or crisis occurs. When a crisis and more particularly a panic, does occur, it seems to be associated with a collapse of confidence and sudden demands for liquidity. This crisis of nerves may itself be occasioned by same spectacular and unexpected failure. A firm or a bank or a corporation announces its inability to meet its debts. This announcement weakness other firms and banks at a time when ominous signs of distress are appearing in the economic structure, moreover it sets off a wave of fright that culminates in a general run of financial institutions.
CHARACTERISTICS OF THE NEPALESE MARKET
1. Rural Nature:
The Nepalese market is predominantly rural as more than four fifth of the total population live in villages. The temporary markets popularly known as Hat Bazzar still play dominant role in the village economy. These village general stores serve much of the consumers living in the rural areas. These local stores have limited supply capabilities. Many consumers have to travel long distance to local markets in order to buy essential products and services. Some parts of the country still practice barter exchange and pay in kinds to the services of tailors, blacksmiths and farm labors.
2. Sellers market to buyers market.
A large part of the Nepalese market is supply- driven and controlled by the sellers. The Nepalese market is slowly moving to become the buyers market. Establishment of several industries in the area of consumer goods has introduced competition in the market. This has benefited the general consumer.
3. Low Consumer awareness.
Nepalese consumers have low product and brand awareness. They are more sensitive to price than in quality of the product. The legal protection of consumer from product failure risk and untruthful advantage is very weak. The consumer associations are city- based and almost non- functional.
4. Credit transaction:
A large part of the market practices are suffering from long payment cycle of distributors and dealers. Although the payment cycle of the retailers are normal the payment cycle of the distributors and dealers are very long. This has hampered the smooth functioning of the marketing system.
5. Push selling.
Nepalese firms heavily believe in push selling. They try to persuade, motivate and reward the channel members to move the product towards the final customer.
6. Technology weakness.
Nepalese firms are reluctant to use the services of marketing experts in the areas of new product development quality control and promotions.
The Nepalese market is predominantly rural as more than four fifth of the total population live in villages. The temporary markets popularly known as Hat Bazzar still play dominant role in the village economy. These village general stores serve much of the consumers living in the rural areas. These local stores have limited supply capabilities. Many consumers have to travel long distance to local markets in order to buy essential products and services. Some parts of the country still practice barter exchange and pay in kinds to the services of tailors, blacksmiths and farm labors.
2. Sellers market to buyers market.
A large part of the Nepalese market is supply- driven and controlled by the sellers. The Nepalese market is slowly moving to become the buyers market. Establishment of several industries in the area of consumer goods has introduced competition in the market. This has benefited the general consumer.
3. Low Consumer awareness.
Nepalese consumers have low product and brand awareness. They are more sensitive to price than in quality of the product. The legal protection of consumer from product failure risk and untruthful advantage is very weak. The consumer associations are city- based and almost non- functional.
4. Credit transaction:
A large part of the market practices are suffering from long payment cycle of distributors and dealers. Although the payment cycle of the retailers are normal the payment cycle of the distributors and dealers are very long. This has hampered the smooth functioning of the marketing system.
5. Push selling.
Nepalese firms heavily believe in push selling. They try to persuade, motivate and reward the channel members to move the product towards the final customer.
6. Technology weakness.
Nepalese firms are reluctant to use the services of marketing experts in the areas of new product development quality control and promotions.
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