Tuesday, June 16, 2020

CNI suggests NRB to reduce interest rate

Kathmandu, Jun 14

 Confederation of Nepali Industries (CNI) has suggested the central bank to gradually reduce the interest rate through the upcoming monetary policy to promote investment.

The steps announced by the central bank in the past were good, but they are not sufficient, said the business body in its recommendations for the monetary policy for the fiscal year 2020/21 which is submitted to the Nepal Rastra Bank (NRB) on Sunday.

Submitting the suggestions to Governor Maha Prasad Adhikari, CNI urged him to capitalise the interest in this difficult period, extend the loan period, simplify the process to obtain additional loan, and restructure the credit.

It has urged the central bank to simplify the process of  Rs. 150 billion refinancing facility recently announced by the government, and start it at the earliest.

“The limit of the concessional loan should be 20 per cent of the total loan obtained by the business or industry or Rs. 200 million in amount. Likewise, no business should be barred from getting the refinancing facility,” it said while urging for special provisions of refinancing for the cottage, small and medium scale enterprise.

Governor Adhikari said that the central bank had taken the suggestions positively.

Stating that the economy was at a critical juncture due to the pandemic there were challenges to resume business operations, he maintained that the NRB would try to soothe the private sector industries through new and innovative programmes.

A delegation of CNI led by its President Sathish Kumar More had submitted the suggestions to Governor Adhikari.

Published in The Rising Nepal daily on 15 Juen 2020. 

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