A special address to construction professionals

Through the new monetary policy, the National Bank will extend the period of paying the principal and interest of the loans to the builders until the middle of next November, unless there is another provision regarding credit notification, blacklisting will not be done only on the basis of dishonored checks. It has introduced a policy including making a separate arrangement for the relationship, maintaining the loan classification and loan loss arrangement like other loans from the date of creation of the loan for the current year for the loans created by claiming the surety of builders. After the problems related to the construction sector and the cooperative sector, it has seen a multifaceted effect. There was a situation where the builders didn't get the money, the checks bounced when they didn't get the money, they were blacklisted when the check bounced, their bank accounts were closed after being blacklisted and they couldn't do anything after the bank accounts were closed, said Governor Mahaprasad Adhikari. As the government is unable to give the amount to be paid to the construction businessmen, the businessmen have been blacklisted. Similarly, the problem of non-renewal of loans, loans turning into non-performing loans is increasing. Sources said that some policies related to that sector have been introduced in the monetary policy to address the situation.

The monetary policy of the current financial year has been presented in a way that facilitates the country's economy, and the private sector has a positive view on it.

Ravi Singh, the president of Nepal Construction Professionals Federation, said that the monetary policy has come in consideration of the sensitive problems in the construction business. "Monetary policy was made keeping in mind the sensitive problems in the construction business," he said, "We welcome that the issues that should have been put in place three years ago have been addressed now." Singh said that businessmen should not be caught unauthorized in connection with check bounces and should be discouraged.

The monetary policy has extended the principal-interest payment period of the loans given to the builders till November 2081. The policy stipulates that builders will not be blacklisted on the basis of check dishonor unless there is another provision regarding credit notification.

But Singh, who is also a construction worker, says that this arrangement only tries to touch the problems of construction workers. He says, "The deadline to pay the principal and interest of the loan has been extended till mid-November. We said that the principal and interest of the loan should be rescheduled so that it can be paid within 2 to 5 years.'

He said that the banks have sufficient liquidity and the lack of capital seen in the construction sector should now be covered by monetary policy procedures. Singh also expressed his concern that the history has been ruined because the builders could not pay the loans.

'I haven't been able to pay the installments of the loan. By capitalizing it, we have to create an environment to invest up to 25 percent more through the next procedure," he said, "Also, we have started the project work by signing an agreement with the government worth 600 billion rupees. The government and the National Bank together should have the ability to pay by issuing development bonds, raising internal or external loans.'' Singh also suggested that the government should prioritize projects with guaranteed resources and proceed with construction work. He added, "Just like in energy and agriculture, the bank had to make a policy arrangement that the construction business should be placed in the production-oriented industry.