5th November 2022, Kathmandu
The industrialists started a street protest with 5-point demands saying that the bank charged more interest. 13 different unions of the private sector started the agitation from Maitighar Mandala on Friday with five demands.
Federation of Nepal Industry and Commerce Kathmandu, Lalitpur Industry and Commerce Association, Bhaktapur Industry and Commerce Association, Kavre Industry and Commerce Association, Sindhupalchok Industry and Commerce Association, Dhulikhel Industry and Commerce Association, Kirtipur City Industry and Commerce Association, Shankharapur City Industry and Commerce Association, Chandragiri Chamber of Commerce, Mahalakshmi Nagar Industry Chamber of Commerce, Namobuddha Chamber of Commerce and Industry and Panauti Chamber of Commerce and Industry have presented their demands in a joint statement.
They have demanded to manage the investable capital as soon as possible so that the deposit does not increase while increasing the deposit interest rate so that it does not exceed one digit for the industry and only 1/2 percent can be taken in addition to business.
Similarly, industrialists demand to reduce the expenses of the banks and keep the spread rate within 3 percent and based on the risk, only 2 percent more premium can be charged on the base rate.
They demanded that the banks should double the service fee, loan approval fee, and LC negotiation fee, not take more than last year, reschedule the existing loans till this financial year, consider the interest payment period up to 35 days as regular and postpone the auction process for now. have done
Similarly, they have demanded that current capital loan guidelines should be postponed as the time is not suitable due to current external and internal reasons.
The business had started to run somewhat due to various financial facilities and assistance generously given in the past to make the private sector, which was badly affected due to the Covid epidemic, operational. But for the past 6 months, more loans have been closed in the name of lack of investable capital and liquidity problems.
Debt collection, auction threats, and unexpected increases in bank interest rates started. Today there is a situation where banks are creating panic everywhere from financial institutions,” said the statement.
The businessmen have complained that the interest rate has been increased by up to 100 percent on forced loans as the interest rate is determined based on demand and supply.
The businessmen have also expressed concerns over such unexpected steps taken in the banking and financial sector which has left small and big businesses, industrial businesses, and the poor discouraged, helpless and worried.