Nepal's Government Trapped in Debt Cycle: Borrowing to Pay Borrowing

Nepal's government is increasingly taking on new debt just to service its existing loans, a practice that raises significant alarms about the nation's financial health. This "debt trap" scenario can directly impact the everyday Nepalese investor by fueling inflationary pressures, making goods and services more expensive. Furthermore, persistent government borrowing may drive up interest rates, potentially increasing the cost of loans for individuals and businesses alike. Such fiscal instability can erode investor confidence, leading to a cautious market environment for stocks and other investments. Ultimately, this cycle of debt burdens the economy, potentially reducing future growth prospects and the value of personal savings.

• MARKET FLASH: Government caught in debt cycle! New loans taken just to pay old ones. What does this mean for inflation & interest rates? #SamacharSanjal #NEPSE #GoldPriceNepal #StockMarketNepal