Kathmandu, Jan. 30
Nepal Chamber of Commerce (NCC) said on Sunday that
to achieve double-digit rate of economic growth, there should be single-digit
interest rate on investments.
Untamed growth in the bank interest rate has created
multiple challenges for the entrepreneurs running their business with the
financing from banks and financial institutions, said the business body in a
statement.
It has drawn attention of the Nepal Rastra Bank at
the time when the interest rate is rising citing the liquidity shortage.
NCC made the comment while submitting its 7-point
suggestions virtually for the mid-term review of the Monetary Policy of the
Fiscal Year 2021/22. On the occasion, NCC President, Rajendra Malla, said to
the Governor of the NRB, Maha Prasad Adhikari to maintain single-digit interest
rate on bank credit mobilisation.
He also urged the central bank to take initiative to
decrease the increment that the BFIs made in the base rate. “The 3-4 per cent
growth in the base rate by the BFIs has created challenges for the
entrepreneurs at the time when the latter are making efforts for the business
and economic revival,” said the NCC.
It also emphasized on channelising 5-10 per cent of
the remittance to the projects like infrastructure development and
hydroelectricity generation that supports capital formation and economic
growth. “Therefore, the government should promote the inflow of remittance
through the banking channel,” read the statement.
The business body has welcomed the NRB’s policy to
offer additional 1 per cent interest rate on deposits of remittance.
Published in The Rising Nepal daily on 31 January 2022.
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