FNCCI and NBA collaborate to support MSMEs

 Kathmandu, Feb. 25

Federations of Nepalese Chambers of Commerce and Industry (FNCCI) and Nepal Bankers Association (NBA) have entered an agreement to protect and promote micro, small and medium enterprises (MSMEs).

Both the organisation signed a memorandum of understanding on Thursday with the aim of facilitating the MSMEs with financial services. FNCCI President Shekhar Golchha and NBA President Bhuvan Kumar Dahal signed the MoU at a programme organised at the FNCCI secretariat.

As per the agreement, challenges in mobilising loan to MSMEs from commercial banks should be addressed through combined efforts and riskless business environment could be created.

It aims at forming joint task force at the central and federal level, formulating policy recommendations to facilitate financial service delivery, cooridinating with the respective agencies and requesting for the policy implementation, and running province-level financial literacy programmes.

Speaking at the programme, Golchha termed the agreement as a milestone in promoting the MSMEs in Nepal.

“We have trodden on a new route of cooperation. It will definitely resolve the constraints the MSMEs facing in obtaining loans from the banks,” he said.

Dahal said that the cooperation between the two organisations would be taken down to the provincial level.

Stating that the banking services have reached 749 local units, he maintained that the cooperation between the two organisations would benefit the MSMEs at the local level, ultimately.

Chairman of the Cottage and Small Enterprise Committee under the FNCCI, D. B. Basnet, another meeting would soon be organised where International Labour Organisation would also be invited to facilitate the implementation of the new plan.

Prakash Sharma, Senior Officer at the ILO, said that 80 per cent MSMEs were facing challenge to access to finance.

Published in The Rising Nepal daily on 26 February 2021.