‘Efforts are on to create distrust on economic system’

By A Staff Reporter,Kathmandu, Dec.2: Acting Prime Minister Purna Bahadur Khadka has said that some interest groups are trying to gain unwanted benefits by showing problems in the economy. He made this remark while addressing the 27th anniversary of the Society of Economic Journalists-Nepal on Friday.

Khadka said that several interest groups were trying to create distrust in the current economic system. He also claimed that the Prime Minister himself had taken serious initiatives to improve the economy and that the economy would return to normalcy soon.

He said that due to the steps taken by the government, the interest rate was decreasing, the stock market had picked up speed and the real estate business was in the revival phase. 

On the occasion, the governor of Nepal Rastra Bank, Maha Prasad Adhikari, requested borrowers to inform the NRB if any bank charged more interest.  He has promised that NRB will return interest if the bank charges high interest. Adhikari said that the interest of Rs. 4.76 billion which was overcharged in the last fiscal year had been refunded. 

He asked everyone not to go beyond the facts and complain if the banks were charging more interest. He said that the NRB is supporting the provision in the budget through monetary policy.

He said that due to the economic recession,  non-performing loans of the banks would increase and the NRB had taken strict measures.  “It was tightened so that bad loans do not increase. Bad loans in Nepal are less, compared to other South Asian countries,” he said.

On the occasion, President of Nepal Bankers’ Association Sunil KC said that the interest rate of loans had decreased by 1 per cent and currently the base rate of the bank was single digit.

 He said that the interest rate would continue to decrease.

President of the Confederation of Nepalese Industries, Rajesh Agrawal said that the government and the NRB should accept that there was economic recession and it was mandatory to adopt the measures to solve it.

President of Nepal Chamber of Commerce Rajendra Malla said that the government and the NRB should take the initiative to address the problems witnessed in the economy. The Chairman of Nepal Securities Board of Nepal, Ramesh Kumar Hamal, said that due to the complicated process in Nepal, investments could not be made.

He suggested that attention should be paid to micro and small enterprises in Nepal. He said that if small entrepreneurs were protected, it would contribute to the economy. On the occasion, SEJON awarded six journalists.