Directive to increase credit flow by revising NRB policy - Finance Minister

Nov Fri 2021 03:04:28

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Directive to increase credit flow by revising NRB policy - Finance Minister

Kathmandu. Stating that there is no serious and specific reason for lack of liquidity in the market recently, Finance Minister Janardan Sharma said that there is no need to panic now. Similarly, the NRB stressed on the need to move ahead by revising the policy in a timely manner, saying that the banks would not be meaningful if the banks could not disburse the loan. Minister Sharma also said that the current liquidity can be achieved by increasing government capital expenditure in the short run and managing foreign resources.

Finance Minister Janardan Sharma has urged the banks to accept the lands in remote areas which are not covered by roads as collateral. He made the request during a discussion with the Governor of NRB, CEOs and representatives of commercial banks at the Ministry on Friday. Minister Sharma pointed out that the banks have been meeting the credit limit recently and urged them to study the state of credit flow now. He said that the bank itself should monitor how much the borrower has invested in which sector and the statistics should be updated. He said that if the banks update the debtor data, the flow of loans will be easier.

Chairman of Nepal Bankers Association and CEO of Krishi Vikas Bank Anil Kumar Upadhyaya suggested that the lack of liquidity in the market could be solved by increasing the capital expenditure of the government. He also said that the liquidity problem would be solved immediately by making arrangements such as hundi control, bringing in foreign loans or grants soon, keeping 100% of the money of local level and corporations in commercial banks.

Similarly, Nabil Bank CEO Anil Shah stressed on the need to increase foreign exchange reserves by stopping the import of non-essential items. He suggested that the import of chocolate and other commodities should be stopped.