Nepal and Finland have signed a bilateral agreement to encourage economic cooperation to protect and promote foreign investment in both countries, officials said.
The agreement signed yesterday will open new avenues for investors in both countries and stimulate private investment.
As per the agreement, the foreign investment shall not be confiscated or nationalised. The main objective of the agreement will be to allow, encourage and promote investment as well as provide returns on investments with fair and equitable treatment.
"The agreement signed here on Tuesday recognises the need to protect investment of investors with full security," Finance Secretary Rameshwar Khanal said adding that it will help in steady flow of investment in the country.
"Therefore, the agreement will encourage partnership between investors of Nepal and Finland for mutual benefit and cooperation," he said.
Foreign Trade and Development minister of Finland Paavo Vayrynen said that Finnish government is ready to extend help to the government of Nepal, despite the international financial crisis.