NCC demands for lock-in interest system

By A Staff Reporter,Kathmandu, Mar. 6: President of Nepal Chamber of Commerce Rajendra Malla has said that the interest rate lock-in system should be implemented for economic sustainability in the country.

According to a press statement issued by the NCC, President Malla said that due to the unstable interest rate, borrowers were in trouble and investment-friendly environment was not created.

“If a fixed interest rate maintained at the initial stage in the process of taking loans for various purposes, including industrial business operation, real estate and agriculture is not changed later, there will be no instability in the financial sector,” he added.

Addressing the festival organised by Dolakha Chamber of Commerce, Malla said that due to high interest rates charged by the banks and financial institutions, business activities had come to a halt.

He said, “The interest rate is 15-16 per cent. There is no environment to do business by taking loans. The situation is such that many businessmen are getting displaced.”

President Malla said that the borrowers were in additional trouble as the premium charged by the bank and financial institutions was high.

He said, "It is essential to create an environment for financial stability and investment for economic development and prosperity."

President Malla emphasised that the private sector and the government should work hand in hand to create new jobs apart from making collective investment in industry and small businesses.

He said that the development of agriculture, tourism, and small industries should be the priority of the state.

In another context, Malla said that although Dolakha is potential in terms of agricultural production, expected benefits have not been achieved.

According to him, production can be increased through the collective farming system in Dolakha.

He said that the Dolakha Chamber of Commerce will coordinate to market agricultural products of the district.