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French investors in the Indo-Suez bank are said to be looking for buyers to sell their holdings and pack up. Newspapers have said deteriorating law and order situation, shrinking opportunities for continuing investment in Nepal, and the omnipresent red tape are said to be reasons. This is not first time the French investors have threatened to pull out. A year ago they said they would quit if government did not let them increase ownership. Permission was granted. Finance Minister Ram Sharan Mahat said foreign banks can own up to 75 percent of stock, up from the existing 50 percent. But that decision may have come too late for Indo-Suez. The Rastriya Banijya Bank owns 15 percent of Indo-Suez, and sources tell us Indo-Suez has been trying to buy out RBB for some time, while the government does not want to sell.The Rastriya Beema Sansthan owns another 15 percent and the public 20 percent. Indo-Suez officials did not make themselves available for comment.


LATEST ISSUE
638
(11 JAN 2013 - 17 JAN 2013)


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