35 Point Recommendations for Monetary Policy by Nepal Chamber of Commerce
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The Nepal Chamber of Commerce has submitted 35 points of suggestions to Nepal Rastra Bank Governor Vishwanath Paudel, which includes topics to be included in the monetary policy. The Chairman of the Chamber, Kamlesh Kumar Agarwal, has submitted these suggestions to Governor Paudel to help make the economic and financial sector viable.
President Agarwal said that various policy suggestions have been presented as the economic and financial sector should be activated through effective coordination of budget and monetary policy. According to the chamber, the contraction in economic activity has resulted in an imbalance between supply and demand, a decrease in private sector assets, and despite sufficient liquidity in banks and financial institutions, the private sector has not attracted investment. In a statement issued by the
chamber, it is said, 'If the loan can be rescheduled for some time through mutual analysis with banks and financial institutions as required by looking at the nature of the industry business, it can create great confidence in the affected entrepreneurs-businessmen.'
Chamber says that the number of entrepreneurs and businessmen who are blacklisted for not being able to pay the bank installments and interest and not being able to deposit cash is increasing rapidly. 'Within three years, more than 100,000 entrepreneurs and businessmen have been blacklisted. If loans can be rescheduled according to the nature of the industry business, many entrepreneurs can avoid bankruptcy,'' the statement said.
The chamber has requested to keep the morale of the private sector high through the monetary policy of the next fiscal year, and to make the economic revival the first priority by looking at the condition of the industry and business for the payment of past liabilities.
The Chamber also emphasized that the future direction of monetary policy should be fully extended, loose and flexible. It is also mentioned in the statement that if the credit flow to the private sector is facilitated, the problem of liquidity will be solved.
The chamber has suggested that the availability of working capital should be made simple and easy for entrepreneurs and businessmen and the current capital loan guidelines should be abolished. The Chamber has also emphasized that to speed up the real estate business, a 100% risk burden should be maintained on loans above 50 lakhs, and the ratio of credit assessment should be kept at 80-20.
After the suggestion of the chamber, the governor Dr. Poudel promised that the monetary policy will be decided in such a way as to make the financial sector viable. Governor Paudel said that the National Bank will accept the suggestions of the Nepal Chamber of Commerce.
