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Amended Monetary Policy Implemented

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Amended Monetary Policy Implemented
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March 3: Nepal Rastra Bank (NRB) has from March 2 implemented the amended monetary policy of fiscal year (FY) 2016/17 which was amended last week.

The provisions of the policy which was amended with objectives of providing relief to industries based on agriculture, construction, production-oriented and service industries, are going to be implemented.  According to industrialists, the amended monetary policy will provide relief for industrial projects that are facing shortage of investable capital for the past five months.

According to the amended provisions, the capital-credit -deposit (CCD) ratio calculation procedure has been made somewhat flexible to some extent till mid-July, 2017.

Issuing a directive on March 2, the NRB has said that while calculating the loan, it will be sufficient to take into account the two percent direct loans for the marginalized, commercial agriculture loan given to youths with subsidies in interest rate and only 50 percent of the loan invested in productive sector.

As per the latest statistics of loan investment, around 150 billion investable amount will be obtained through this provision.

However, this investable capital added through the revision of the CCD calculation procedure without new deposit will not be received forever.  

The NRB source said this facility was arranged for a short term as both BFIs and industries faced difficulties for lack of investable capital due to various reasons.

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