20.1 C
Wednesday, October 20, 2021
    Nepal Breaking NewsBusinessMonetary policy provides relief to pandemic-affected private sector businesses

    Monetary policy provides relief to pandemic-affected private sector businesses

    Must Read

    The monetary policy 2021-22 been welcomed by the commercial sector. They stated that if the macroeconomic strategy is correctly executed, it will provide relief to the Covid-19 affected industries, especially small medium-sized enterprises (SMEs) and tourism businesses.

    According to the Federation of Nepalese Chambers of Commerce Industries (FNCCI), continuing refinance, restructuring, and rescheduling facilities will deliver favourable results, primarily for coronavirus-affected industries. β€œThe provision of charging a maximum premium of two percentage points in the basic interest rate in credit of up to Rs 10 million to be accepted by SMEs will help boost access of small enterprises to bank loans,” according to a news release published by the FNCCI.

    - Advertisement -

    Furthermore, the elimination of the credit-to-core-capital-plus-deposit (CCD) ratio could help preserve appropriate liquidity in the market, according to FNCCI. The Nepal Rastra Bank (NRB) asked banks financial institutions (BFIs) to maintain the loan to deposit ratio at up to 90 percent by repealing the mandated CCD ratio. The rule required BFIs to keep the CCD ratio at 85 percent, which meant that financial institutions may not lend than 85 percent of their deposit and core capital.

    Similarly, the Confederation of Nepalese Sectors (CNI) stated that credit flexibility for pandemic-affected industries will them in continuing expanding their businesses while promoting economic activity. β€œThe announcement to eliminate the penalty amount in the interest dues of tourism enterprises will aid in the recovery of associated businesses,” according to a CNI press release.

    You May Also Like


    Please enter your comment!
    Please enter your name here

    Latest News

    Nepal Stock Exchange Ltd.

    As of 2021-10-20 15:00:00 ...

    More Articles Like This