Nepalese government gives Rs1.5 billion loan to Nepal Oil Corp.

Nepal’s Finance Minister Barsha Man Pun said that the government has decided to give a Rs1.5 billion (US$18.8 million) loan to state-owned Nepal Oil Corporation (NOC). NOC had previously asked for a Rs5 billion (US$62.7 million) loan to help ease the current lack of supply of petroleum products for at least three months. Nepal’s increasing consumption of petroleum products is currently more than the total earnings from exports in a fiscal year. NOC is incurring monthly losses of Rs102.9 billion (US$1.3 billion) and has outstanding dues worth Rs11 billion (US$138 million). (December 23, 2011)