Monetary policy focus on loan utilization - Dipendra Bahadur Chhetri, Former Governor

Jul Wed 2020 06:46:36

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Monetary policy focus on loan utilization -  Dipendra Bahadur Chhetri, Former Governor

Former Governor of Nepal Rastra Bank, Dipendra Bahadur Kshetri, has said that the monetary policy for the coming fiscal year should focus on re-utilizing loans.

Stating that the NRB is going to increase the size of the loan fund again to facilitate the private sector which is in a very difficult situation due to the corona virus, the former governor said that the region should focus on increasing the utility along with the size.

NRB has already announced to increase the refinancing fund to one trillion rupees. NRB has also said that it will increase it. However, the fund now has less than Rs 40 billion. It has not been used.

It is suggested by the former governor of the region that additional amount should be used for this. "It is better to extend the loan to the rural areas and provide the facility to up to 10 customers per branch," he said. "Doing so will make the facility accessible to all and the message that NRB has given concessions will reach the people."

The corona virus has badly affected the world economy. Governments in many countries have introduced various economic relief packages. However, Chhetri said that the Nepali government has not been able to provide any concession other than assurance of tax exemption and slight reduction in electricity tariff.