Kathmandu. KATHMANDU: Nepal Chamber of Commerce (NCC) has urged the Nepal Rastra Bank (NRB) to make the monetary policy for the upcoming fiscal year investment, production and private sector-friendly. A team led by NCC President Kamlesh Kumar Agrawal led the meeting was attended by NRB Governor Dr. He met with Dr Bishwanath Poudel and urged him to bring a policy to address the problems of entrepreneurs.

During the meeting, NCC urged the government to bring monetary policy to provide loan of more than 20 per cent to achieve 7 per cent economic growth rate. Stating that the economy has been sluggish for the past five years and the morale of the private sector has weakened, the NCC has demanded to prioritise the expansion of economic activities.

Likewise, the government has called for making the single-digit interest rate a permanent policy, reducing the bank rate to 5 percent and limiting the spread rate to 3.5 percent. Likewise, the committee has demanded to immediately scrap the ‘Working Capital Credit Directive 2078’ and provide working capital to the entrepreneurs in an easy and smooth manner.

Stating that the existing provisions related to money laundering have created fear among the entrepreneurs, the NCC has suggested adopting a practical approach regarding the source of wealth earned before 2064 BS. It has also urged banks to implement an integrated digital system by ending the different and cumbersome KYC process.

Likewise, the chamber has demanded that the entrepreneurs who have not been able to pay bank installments and interest should be given the facility of re-tabulation and restructuring on the basis of the nature of their business instead of immediately blacklisting. Agrawal, president of the chamber, said that it has been suggested to maintain the loan-to-value ratio at 80 percent especially to make the real estate sector vibrant.

The monetary policy should not only be focused on price stability but also on production, investment and employment generation. He said that the economy would be revived only if the policy was introduced to restore the confidence of the private sector.

During the meeting, Governor Dr. He also said that Nepal Rastra Bank was positive towards economic growth and development of private sector. Saying efforts were underway to remove unnecessary regulatory compliance, he pledged to address the genuine suggestions of the private sector through monetary policy.