The Federation of Nepalese Chambers of Commerce and Industry. (File photo)
KATHMANDU: The Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has urged Nepal Rastra Bank (NRB) to adjust the interest rate on loans so that the pandemic struck business sector can withstand the loss it’s doomed to go through.
It has demanded the regulating authority NRB to bring down the interest on loans by three percentage points.
The FNCCI delegation led by President Bhawani Rana visited the newly appointed Governor of Nepal Rastra Bank Maha Prasad Adhikari urged the regulating body to bring down the interest rate on all types of loans for businesses amid the ongoing crisis caused by the coronavirus pandemic as a means of helping business sector revive.
FNCCI recommended the government to reduce the gap in the interest at deposit and interest at loan.
All trading houses and businesses have come to a sudden closure for nearly a month due to the lockdown enforced to curb COVID-19.
The delegation suggested NRB take different business and industry-friendly measures to help businesses survive the devastation of the coronavirus pandemic.
After elaborating the problems, FNCCI urged the central bank to manage refinancing loan facilities for businesses at two percent to pay interest of businesses in the tourism, manufacturing, agriculture and export sectors.
It even asked NRB to set at least two years as the maturity period for such loans. FNCCI also demanded to offer one year of repayment time for small and medium scale enterprises.
After listening to the delegation, NRB Governor Adhikari informed them that a committee is studying the impact of the coronavirus on businesses and the economy and after NRB got their report it would take due action.
“FNCCI’s recommendations will help the central bank to properly assess the impact of the pandemic. NRB will coordinate with the private sector and facilitate them through different means,” he added appreciating the recommendations made by the delegation.