Kathmandu. The private sector has increased lobbying to stabilize interest rates. At the same time, the government is preparing an action plan to provide loans to industrialists and businessmen at a fixed interest rate.
The government has put the fixed interest rate in its action plan as suggested by the High Level Economic Reform Suggestion Commission headed by former Finance Secretary Rameshwor Khanal. According to the economic reform implementation action plan-2082 unveiled by the government recently, “Loans will be given to productive industries, small and small enterprises and exporters at three to five years interest rate.” ’
The private sector has stressed the need to make provision in the budget after the government included it in the action plan to provide loans at a fixed interest rate. It is said that it is a matter of discussion to stabilize the interest rate at what percentage.
The private sector has been saying that the interest rate should be stabilized by 5 to 6 percent. However, now the banks are giving loans at a fixed interest rate of around 8 percent. Now it should be announced on behalf of the government and made arrangements.
Bankers, however, have started saying that they can move forward by keeping a stable interest rate of 9.5 to 10 percent. Bankers believe that if the government stabilizes the low interest rate, it will again affect the banking system.
fiscal year 2082. The budget of 83 will be announced tomorrow. The private sector expects the budget to include a policy of fixed interest rates.
The private sector has been demanding stable interest rates for a long time. The private sector, which has not been able to take loans and repay loans as interest rates have reached double-digit highs for the last few years, have since demanded stable interest rates.
At present, the private sector has been saying that there is no business environment as the bank will fix the interest rate on its own, increase the interest given as fixed after a few months and pressure it to pay it. According to the private sector, an environment of working investment will be created only if a stable policy is brought by stopping it.
The private sector has been saying that the interest rate should be fixed at 5-6 percent for 10 years.
Bankers, however, say they are already offering loans at a stable rate of interest. Some banks are giving loans at fixed interest rates to suit their situation and convenience.
Bankers say that it is not good to say fixed interest rates in the current situation. “I don’t think the government should make it mandatory,” says the CEO of a commercial bank. If there is no situation, how can we give it?”
Bankers say that the government should not make it mandatory to announce fixed interest rates. The private sector has been lobbying top leaders of political parties, finance ministers, governors and prime ministers for stable interest rates.
A few days ago, the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) met Governor Bishwo Poudel and demanded stability. FNCCI President Chandra Dhakal had said that policy instability was the main obstacle to investment and demanded an integrated policy and a stable policy for 10 years. “The central bank’s policies also need to be stable,” he said.
Governor Poudel is also positive about the demand of stable interest rate and stability in the private sector. In a discussion with the Federation, Poudel said that the private sector is the driver of the economy and stability is necessary to keep the economy moving. “Decisions have to be predictable. I am of the view that policy stability can be maintained only by sitting with stakeholders and moving forward rather than taking any emergency decision in the banking sector. ’
