Kathmandu. The Confederation of Nepalese Industries (CNI) has submitted suggestions to the Nepal Rastra Bank for the monetary policy for the coming Fiscal Year 2078/79. The confederation's president Satish Kumar Mor presented the monetary policy suggestions on behalf of the confederation to the Governor of Nepal Rastra Bank, Maha Prasad Adhikari.

Accepting the suggestions, Governor Adhikari said that he has received important suggestions from the confederation and will move forward by including them in the upcoming monetary policy.

In the suggestion of monetary policy, the confederation has mentioned that Nepal Rastra Bank should work on liquidity management, control of interest rate increase, continuity of refinancing facility and control of inflation. Similarly, the confederation is of the view that the government has set a target of mobilizing a large amount of internal debt and it should focus on minimizing the risk of interest rate hike by curtailing the existing liquidity. For this, it is suggested to adopt a policy of flexibility in CCD, CRR, SLR and other rates.

The confederation has also suggested that the facility of restructuring and rescheduling of loans and interest should be provided as the first and second wave of Covid (19) is having serious impact on the industry and the bank is facing problems in installment and interest payment and it will take some time for normalcy after Covid.

In order to contribute to self-employment and job creation by developing innovation and entrepreneurship, the confederation suggests that the practice of securities-based credit flow should be shifted to project-based credit flow.

The confederation has also requested the NRB to review the existing provisions on watchlist. Similarly, separate refinancing funds should be set up for large and small and medium enterprises and the refinancing limit should be 20 per cent of the total loan or Rs 200 million whichever is more. The confederation has demanded.

Presenting suggestions to NRB, Chairman More said that many businesses have been seriously affected due to COVID 19 and their continuity is the main need of the hour.