Automobile sector neglected in monetary policy: NADA

Highlighting the existing problems of the automobile sector before the Nepal Rastra Bank 7 different suggestions were presented," the press release said, "Monetary policy has not only failed to address any of NADA's suggestions but has been completely ignored." In the automobile sector, NADA has said that the overall automobile market has declined by 68 percent as the entire sector is in crisis due to the lack of policies that are friendly to the auto automobile sector along with the economic slowdown.

NADA said that due to negligence in monetary policy, automobile businessmen are unable to pay their loans and the businessmen are blacklisted . According to NADA, employees living in automobile workshops and showrooms will also lose their jobs. NADA has kept the automobile business of Nepal to make it dynamic. We expect to address the suggestions immediately and bring a business-friendly policy,'' the statement states.

Point 79 of Monetary Policy's ``B'' states that the construction business will not be included in the blacklist only on the basis of check dishonor unless there is another arrangement related to credit notification. Businessmen are confused by policy 'B' of point 79 of the monetary policy,' the statement said, 'It should be blacklisted for heavy equipment, trucks, tippers, parts lubricants, tires and batteries which are given on loan. If this is not done, all these will turn into bad loans. NADA demands that this arrangement should be applied only in the case of checks taken after selling any goods. NADA suggested that banks should increase the lending ratio (loan to value ratio) from 50 percent to 75 percent in the process of disbursing higher purchase loans from banks.

Various suggestions were made including the need to clearly separate private purpose and commercial vehicles running on petrol, diesel and electric power and facilitate bank investment accordingly.