Kathmandu. Ratna Raj Bajracharya, chief executive officer of Global IME Bank, said that if the liquidity problem is not resolved, the interest rate on loans will reach 18 percent by next July.

Speaking at a discussion program organized by the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) in the capital on Wednesday, CEO Bajracharya said that there was no immediate solution to the liquidity crunch.

He said that the interest rate on refinancing has been raised to 7 percent through the Nepal Rastra Bank Monetary Half Yearly Review. "The interest rate on deposits is expected to reach 15 percent. It is not clear what is meant by production and non-production," he said.