Automobiles sector neglected in monetary policy: NADA

"Nepal had presented 7 different suggestions to the National Bank of Automobiles," the press release said, "not only has the monetary policy failed to address any of NADA's suggestions, but it has been completely ignored." According to NADA, the overall automobile market has declined by 68 percent as the entire sector is in crisis due to the lack of sector-friendly policies.

Negligence in monetary policy has resulted in automobile dealers not being able to pay their debts and the dealers will be blacklisted.

According to NADA, employees living in automobiles workshops and showrooms will also lose their jobs. "We expect to immediately address the suggestions made by NADA to make Nepal's sluggish automobile business dynamic and come up with a business-friendly policy," the statement said.

In point 79 of monetary policy, it is said that the construction business will not be included in the blacklist only on the basis of dishonored check unless there is another provision regarding credit notification. "Businessmen are confused by Policy 'B' of Monetary Policy Point 79," the statement said. If this is not done, all these will turn into bad loans. NADA demands that such a system should be applied only in the case of checks taken after selling any goods.

In the process of granting hire purchase loans to petrol and diesel vehicles from banks, NADA suggested that the loan to value ratio should be increased from 50 percent to 75 percent. 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.