Kathmandu, May 22
Dr. Biswo Nath Poudel, the newly appointed
Governor of the Nepal Rastra Bank (NRB), has stated that policies of the
central bank, including monetary policy, will be formulated on the basis of
policy stability and consultations with stakeholders.
During a meeting held at the central bank
on Wednesday with a delegation from the Federation of Nepalese Chambers of
Commerce and Industry (FNCCI), Governor Dr. Poudel said that decisions made by
the central bank would be predictable.
The FNCCI delegation reached the central
bank to congratulate the newly appointed governor.
“The private sector is the driving force of
the economy. Stability is essential to keep the economy dynamic. Decisions must
be predictable. Rather than taking abrupt decisions in the banking sector, I
believe that policy stability can be ensured by engaging in discussions with
relevant stakeholders,” he said according to a statement issued by the FNCCI.
Governor Dr. Poudel further noted that the
central bank would play a key role in revitalising the economy.
President of the FNCCI, Chandra Prasad
Dhakal, suggested that the central bank introduce investment-friendly and
confidence-building measures. He stressed that the NRB should work towards
creating an investment-friendly environment and contributing to the nation’s
economic prosperity.
“In the current fiscal year, despite low
interest rates on loans, credit expansion has been sluggish. To boost the
morale of the private sector, both monetary and non-monetary measures need to
be adopted. Policy instability remains a major obstacle to investment,” said
Dhakal.
The FNCCI informed the Governor that high
interest rates in previous years had led to an increase in non-performing loans
in the current fiscal year, as both businesses and the general public struggled
to repay instalments. As a remedy, they suggested that arrangements be made for
loan restructuring and rescheduling.
On the occasion, FNCCI’s Immediate Past
President, Shekhar Golchha, pointed out that, despite positive signs in most
economic indicators, the overall economy had failed to gain momentum. He urged
the central bank to take a proactive role in stimulating the broader economy.
Likewise, Senior Vice President, Anjan
Shrestha, recommended that the liquidity available in banks be channelled into
productive sectors and that there should be a differentiation in interest rates
for loans provided to industries and businesses.
Published in The Rising Nepal daily on 23 May 2025.
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