Still tight stance of monetary policy : The limit of 12 crores fixed on share mortgage loan was not removed

Feb Sat 2023 03:15:44

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Still tight stance of monetary policy : The limit of 12 crores fixed on share mortgage loan was not removed

Kathmandu. Nepal Rastra Bank has released the annual review of monetary policy for the current financial year 2079/80. In monetary policy, most of the policies have been kept unchanged. Rastra Bank has also maintained the limit of 120 million in share mortgage loans.

The spokesperson of Nepal Rastra Bank, Dr. Gunakar Bhatt, said that the limit of 12 crores imposed on share mortgage loans has been kept unchanged as there are still risks in the banking sector. According to spokesperson Bhatt, since there are risks in the economy, removing the limit now may cause problems again tomorrow.

The finance minister was very successful in the stock market. After he came, the market bounced back by about 400 points. Remittances started to increase and many indicators such as balance of payments started to look in favor of Nepal. This increased the confidence of investors. Even though the government took drastic measures like import bans, the process of improving liquidity in the financial system did not stop. Rashtra Bank itself also helped the government by canceling the disincentive provisions including import margin.

After such a long development, it was not new for investors to believe that the reins of the National Bank were in the hands of the Finance Minister. Therefore, it was expected that the provisions of 4-12 would be removed in the review of monetary policy and the collateral valuation of share mortgage loans would also be relaxed. In the last three days, this rumor helped NEPSE to increase more than 80 points. But that was not the case. Not only stock investors, many businessmen should be excited about the review of monetary policy.