Kathmandu. Manoj Gyawali, Chief Executive Officer of Nabil Bank (CEO), said that the government has not paid the contractors on time, which has created pressure on the banking system and . Speaking at a discussion on the monetary policy at the Finance Committee of the House of Representatives, he said that there is a risk that the bad loans (NPL) will increase due to the suspension of contracts or delay in payment.

Stating that banks have a loan investment of around five trillion rupees in the construction sector, he said that the government should address the works of the contractors. 

He urged the government to facilitate payment through the monetary policy.He said that if the government makes alternative arrangements like timely payment orcontract transfer, it will be easier to manage the loan and reduce the pressure on the banking system . 

He also said that banks pay around Rs 38 billion in income tax annually and the government’s failure to resolve the problems of contractors has affected the profit of banks. He said that this will also have a direct impact on the revenue collection of the state . 

Stating that the customers who do not repay the loan should be classified , Gyawali said that the borrowers who are unable to repay the loan intentionally and circumstantially should not be punished by putting in the same basket. According to him, at present, once the loan reaches the ‘loss’ category within a year, the process of blacklisting, freezing or confiscating the passport can be initiated. He said that this will put the businessmen in real trouble in more . 

He said that strict action should be taken against those who deliberately do not repay the loan.However, he said that the businessmen who are investing in the business, who have not been able to repay the loan due to economic recession or other reasons, need some more facilitation.