Chairperson of Confederation of Banks and Financial Institutions Nepal (CBFIN) Pawan Kumar Golyan/File Photo
LALITPUR: Chairperson of Confederation of Banks and Financial Institutions Nepal (CBFIN) Pawan Kumar Golyan said there was no investment-friendly environment in the country despite the availability of liquidity in banks and financial institutions.
Golyan said the financial institutions were afraid of flowing new investments despite having adequate deposits in banks.
“Banks and financial institutions’ staffs are not assured that loan invested in different sectors would be paid back,” he said at a program in Lalitpur, Tuesday.
He urged the media to raise the issue that it was wrong to create an environment for not to repay loans in an organized manner.
“The interest rate charged for the productive sector should be low than the interest rates for the unproductive sector”.
“The fear for reducing the interest rate was to check flight of money for purchasing luxurious goods. But, the banks and financial institutions received huge amount of deposit due to higher interest rates,” he stated.
“On the other, entrepreneurs are not in a position to bear the existing interest rates. Therefore, interest rates should be lowered”, he added.
There was an investment of Rs 200 billion in small hydropower based energy sector from banks, he said, stressing the need to formulate policy taking into consideration the chance for leveraging economic prosperity.