April 14, 2020, Kathmandu
The FNCCI ( Federation of Nepalese Chambers of Commerce and Industry) has requested Nepal Rastra Bank to adjust the interest rate on loans so that the pandemic struck the business sector can withstand the loss it’s doomed to go through.
Bhawani Rana, President of the FNCCI delegation, led the commission in the meeting with the Governor of Nepal Rastra Bank, Maha Prasad Adhikari suggested NRB drop the interest on loans for businesses hampered due to the outbreak of the virus.
Several businesses ranging from small-scale to large-scale have suddenly shut down in response to the novel virus. They have been closed for almost a month due to the government imposed lockdown. The FNCCI delegation has demanded the regulating body to bring down the interest on loans by three percentage points as a means of helping the business sector revive.
FNCCI has also urged the Nepal Rastra Bank to manage refinancing loan facilities for businesses at two percent to pay interest of companies in the tourism, manufacturing, agriculture and export sectors. It recommended NRB to set at least two years as the maturity period for such loans. FNCCI also urged to offer one year of repayment time for small and medium scale enterprises.
FNCCI suggested the government to reduce the gap in the interest at deposit and stake at loan.
The NRB Governor Adhikari informed us that a committee is studying the impact of the coronavirus on businesses and the economy. After a report is prepared, they will take due actions. “FNCCI’s recommendations will help the central bank to assess the impact of the pandemic properly. NRB will coordinate with the private sector and facilitate them through different means,” he added.