April 12: Chairperson of the Confederation of Banks and Financial Institutions Nepal (CBFIN) Pawan Kumar Golyan insists that there is no investment-friendly environment in the country despite availability of liquidity in banks and financial institutions.    
Speaking at a press conference organized by CBFIN in Lalitpur on Tuesday, Chairperson Golyan said the financial institutions were afraid of flowing new investment despite having adequate deposits in banks.

"Banks and financial institutions' staff are not assured that loan invested in different sectors would be paid back," said Golyan.    
He urged the media to raise the issue that it is inappropriate to create an environment for not repaying loan in an organized manner.

"The interest rate charged for productive sector should be lower than the interest rates for unproductive sector," he added.    
"The high 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. On the other hand, entrepreneurs are not in a position to bear the existing interest rates. Therefore, interest rates should be lowered," he noted.    

On the occasion, Golyan said the interest rates should be lowered effective from mid-April since the entrepreneurs are not being able to pay back the interest rates of the loan.

According to Golyan, banks have invested Rs 200 billion in small hydropower based energy sector.

CBFIN secretary Pushpa Sharan Mallik said the banks and financial institutions should discourage fixed deposit below one year so as to reduce interest rates. -- RSS