Friday, June 16, 2023

COVID-era facilities won't last long: Governor Adhikari

Kathmandu, June 15

Governor of the Nepal Rastra Bank (NRB), Maha Prasad Adhikari, stated the facilities given to the businesses would not be continued any further and the private sector should not lobby for the same.

"It is illogical to demand the continuation of the facilities offered during the challenging times like coronavirus," he said while speaking at the discussion programme on Monetary Policy for the Fiscal Year 2023/24 organised by the Management Association of Nepal (MAN) in the Capital on Thursday.

According to him, in the post-COVID scenario, the government and central bank had supported, despite limited resouorces, the businesses that were facing challenge in repayment of the loans and rehabilitation of their businesses.

The central bank allowed restructuring and rescheduling the loans as per the requirement of the size of business. Loan payment deferrals were also allowed. Likewise, a large fund was created to provide refinancing facility to the pandemic-affected businesses.

Stating that the monetary expansion in the next fiscal 2023/24 would be guided by the rates of economic growth and inflation as targeted by the government in its budget speech for that year, Governor Adhikari expressed his hopes that the ever-increasing price of goods and services would be moderated next year.

Through the budget of FY 2023/24, Finance Minister, Dr. Prakash Sharan Mahat, projected 6 per cent Gross Domestic Product (GDP) growth and 6.5 per cent inflation rate.

The Governor of the central bank said that financial inclusion and digital financial services are the priority areas of the NRB.

Published in The Rising Nepal daily on 16 June 2023.    

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