KATHMANDU: Federation of Nepalese Chambers of Commerce and Industry (FNCCI) President Chandra Prasad Dhakal has requested Nepal Rastra Bank (NRB) to provide loan restructuring and rescheduling and re-loan facilities, and make arrangements to reduce interest rates on loans along with reduction on deposits to keep the market running.
FNCCI President Dhakal, while presenting suggestions to NRB for the fourth quarter review of Monetary Policy 2022/23, requested for immediate restructuring and rescheduling of loans citing that the economic activities are relaxed, the ability of the entrepreneurs to pay the interest on loans is decreasing, while the bad loan ratio of the banks has also increased. Despite the availability of liquidity worth Rs 200 billion in the banking system, loans have not been able to flow, he said and suggested the central bank should reduce the bank rate, and cash reserve ratio (CRR) as a measure to reduce the interest rate.
On this occasion, NRB Governor Maha Prasad Adhikari assured that the suggestions that can be implemented immediately will be taken seriously and fulfilled. Dhakal also urged the central bank governor to arrange re-loans for construction, manufacturing industries and small and medium industries.
On the behalf of private sector, FNCCI President stressed the need to review some provisions of the Working Capital Loans Guidelines, 2079. He made suggestions to review provisions such as maintaining zero arrears for seven days annually, to encourage export by giving interest concessions to industries with high potential for export. The interest rate on loans given to productive sectors should be lower than other sectors, according to the federation. The federation also suggested implementing the policy arrangement made in the budget to provide project loans to small and medium enterprises by managing risk up to a certain amount.
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Published Date: May 9, 2023, 12:00 am
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