Kathmandu. The Zenji movement of September 23 and 24, 2008 has not been able to make the economy dynamic through credit expansion, even though it could change the government. <\/p>\n
Although the country has been able to reach the power and reins of the country under the leadership of the youth, the flow of credit, which is considered to be the main part of the economy, has failed to gain momentum as expected during the 1 year after the Genji movement. Although the general public had a great hope and a desire for change for the new youth government formed after the election, the private sector could not be fully confident in the government. Due to this mistrust of the private sector, there was a great difficulty in creating a favorable environment for new investment in the country. <\/p>\n
Looking closely at the central bank’s data, banks and financial institutions are now piling up more liquidity in the market, while the interest rate on loans has come down to single digits. Although there is no shortage of financial resources for investment, due to the deteriorating morale of the private sector, the courage to expand the business by taking loans has not increased yet. <\/p>\n
The expansion of credit in the country in the last one year is a very slow pace for the economy. Although the central bank had set a target of double-digit loan growth to the private sector in the last fiscal year, only half of that target could be met by the end of the financial year. Even after that, the banks have announced various attractive discounts and concessional offers for credit promotion, but the demand for loans from the market has not been satisfactory. Due to the lack of demand for credit in the market, the average CD ratio of the entire banking system has come down significantly and huge investable money is piling up unproductively in the system. <\/p>\n
After the change of government, various policy and budgetary schemes have been put forward one after the other to bring the economy on the right track, but their positive impact has not been seen in practice. Although the number of people visiting banks and financial institutions to get information about loans or inquire about them has increased, businessmen have not dared to get loans approved in the end and take up new projects. <\/p>\n
According to the available data, most of the loans issued so far have been more focused on daily consumption, general services and traditional trade than on large productive industries or job-creating sectors. Although some investment has been made in agriculture, energy and hydropower, it is not considered sufficient to provide mobility to the overall economy. <\/p>\n
The various physical losses during the movement and the subsequent political and social developments are making the private sector psychologically insecure and frightened. Although the monetary policy issued by the central bank claims that it has included many points of flexibility and relief for the economic recovery, the entrepreneurs have not been able to fully feel safe. <\/p>\n
Meanwhile, various natural disasters and major incidents of floods and landslides have further slowed the economy, pushing back the time for the market to gain momentum. In the eyes of experts, the government should now speed up the reconstruction work by mobilizing external concessional loans and aid. This should help in reviving the cycle of the economy by increasing the demand for cement, rods and other construction materials. <\/p>\n
Meanwhile, the private sector has also been expressing great dissatisfaction with the administrative functioning of the state. They complain that instead of protecting and encouraging the industrialists and businessmen who have become terrified and terrified after the Zenji movement, the policy of arresting and intimidating various state agencies has further spoiled the investment environment. <\/p>\n
While the state should take legal action on the basis of facts and evidence while investigating any matter, the aggressive practice of ‘locking up first and understanding the matter later’ has discouraged the investors. As long as such an atmosphere of mistrust and fear persists, the investment and credit flow is not going to pick up the expected pace even if other indicators of the economy are positive. Although the government is taking initiatives to boost the morale of the private sector, it has not been fruitful.<\/p>\n","protected":false},"excerpt":{"rendered":"
Kathmandu. The Zenji movement of September 23 and 24, 2008 has not been able to make the economy dynamic through credit expansion, even though it could change the government. Although the country has been able to reach the power and reins of the country under the leadership of the youth, the flow of credit, which […]<\/p>\n","protected":false},"author":16,"featured_media":315233,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[45117,45031,45159],"tags":[],"class_list":["post-315234","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bank-finance-en","category-banner-news-en","category-news-en"],"acf":[],"_links":{"self":[{"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/315234","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/users\/16"}],"replies":[{"embeddable":true,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/comments?post=315234"}],"version-history":[{"count":1,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/315234\/revisions"}],"predecessor-version":[{"id":315235,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/315234\/revisions\/315235"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/media\/315233"}],"wp:attachment":[{"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/media?parent=315234"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/categories?post=315234"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/tags?post=315234"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}