The First Quarterly Review of Monetary Policy is one of the most significant developments.

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The first quarterly assessment of monetary policy for Fiscal Year 2078/79, published by the Nepal Rastra Bank, is now available online.

The National Research Board released its first quarterly review on Friday morning.

The provision for share loans has remained unchanged in the first quarter’s financial statement analysis. Nepal Rastra Bank (NRB) has implemented a 4/12 share loan structure in the current fiscal year as a result of monetary policy decisions. It is stipulated that no individual can have a total of more than Rs. 12 crores worth of margin loans from financial institutions, and no bank can transfer more than Rs. 4 crores worth of margin loans to an individual.

In a similar vein, the National Reserve Board has not its policy on the loan-to- ratio. However, it appears that the Nepal Rastra Bank (NRB) has provided banks and financial institutions with greater freedom in terms of the loan-to-deposit ratio. The action plan to be kept within the specified parameters by Ashar 2079 BS can now be accepted and implemented by the respective Boards of Directors of the financial institutions involved in the transaction.

It has been made essential to maintain a margin when opening import letters of for the specified commodities due to the current scenario regarding foreign exchange reserves.

Following the review, arrangements will be made for Nepali firms and companies involved in commercial agriculture, manufacturing industry, infrastructure construction, and tourism to obtain bank guarantees from commercial banks in order to obtain institutional loans from foreign lenders in these industries.

The existing arrangements, which include interest rates and fees for foreign currency loans, will be reviewed and updated as necessary. Arrangements will be created for the collection of foreign currency deposits from non-resident Nepalis and foreign institutions with non-resident Nepalis as shareholders or members. In the meantime, the existing limit on non-deliverable forward foreign currency trading will be re-examined.

According to the study, financing would be made available for the construction of hospitals at the local level in areas where there currently no such facilities. In order to construct a 100-bed hospital at the local level, where there is now no hospital, an agreement has been reached to provide a loan of up to Rs 20 crores by adding a 2 percentage point premium to the rate on loans up to that amount. Previously, the monetary policy had provided provisions for the quick release of loans from banks and financial organizations for the construction of 100-bed hospitals at the local level in areas where there were no such facilities available.

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