Stakeholders stress on issuing Monetary Policy before the closer of FY

Jul 08, 2020 11:07 AM Merolagani

Nearing closure of FY has deepened the anxiety of paying installments of the loans taken from banks and financial institutions among the business persons.

 In the midst of lockdown, Nepal Rastra Bank (NRB) provided some relief to the business community by extending the time for repayment of loans and interest of third-quarter till the fourth quarter. But as the lockdown has not ended and business has not resumed in the economy as in yet, the anxiety in the community is also increasing.

The business community had expected of getting some extra time to repay loans, had the central bank issued the Monetary Policy by mid-July. However, NRB is set to issue the Monetary Policy in the third week of July only, which has shaken the business community.

The business community is demanding of bringing the Monetary Policy before the closure of the current FY and extends the time for repayment of loans and interest. Otherwise, they stressed to issue a circular to BFIs that will extend the time for the repayment of loans.

The business persons are facing big pressure to make payment of interest and loan installment as their businesses have not started yet due to the ongoing lockdown. Let alone be the principal, they are finding difficulty to even pay interest and rents on their lease.

The business community was relieved when Finance Minister Dr Yubraj Khatiwada in some public platform said that the time of repayment of loan and interest will be extended. However, neither the central bank has issued Monetary Policy nor it extended the time.

Man Mohan Shrestha, former executive director of NRB stressed that the time for repayment of loan and interest should be extended to facilitate the business community. The community is urging the central bank to issue the monetary policy within the FY.

Meanwhile, BFIs are also concerned for the recovery of their installment as the economy has not resumed. They fear the non-recovery of loans may increase their bad debts.

 


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