Poudel of Nepal Rastra Bank said that loans will not be effective unless trust is built.
Nepal Rastra Bank spokesperson Guru Prasad Poudel has said that increasing credit flow is not enough to revive the economy, but rather creating a sense of trust and security among investors.
Speaking at the session on 'Reviving the Economy, Restoring Trust' under Kantipur Conclave-2026, Poudel clarified that the Rastra Bank is waiting for a suitable investment environment. According to him, the demand for loans has not increased as expected. 'A survey published by a private organization some time ago showed that about 70 percent of investors were looking at what to do next and 7 percent said they would not invest anymore,' he said. 'The lack of demand for loans may be due to the lack of confidence and security among investors and the perception that there will be no returns from production.'
According to him, loans will not be effective until trust is increased. However, he also informed that the Rastra Bank has taken various steps for legal and policy facilitation.
He said that the Rastra Bank has provided a system for easy provision of loans of up to Rs 1 million through banks and financial institutions, facilitated concessional loans, and supported the operation of economic activities in the Mid-Hill Highway area.
In the final session of Kantipur Conclave-2026 on Monday, discussions are being held through various sessions on 'Economy, Investment, Financial Stability and Restoring Trust'.
