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Monetary Policy did not Address the Concerns of Private Sector: NCC
1 min 13 sec to read
July 11: Nepal Chamber of Commerce (NCC) has termed the monetary policy unveiled by Nepal Rastra Bank on July 9 as a continuation of the same old policies of the past.
NCC said in a statement that it finds the new monetary policy stagnant although the economic conditions were quite different when the current monetary policy and the monetary policy for the upcoming fiscal year were released.
NCC said that entrepreneurs are having hard time obtaining the desired amount of loan from banks and financial institutions (BFIs) due to high rate of interest and lack of investible liquidity. NCC had given suggestions to NRB to address this problem but the new monetary policy of the central bank has disregarded the suggestion of the private sector, reads the statement.
NCC has also claimed that the monetary policy will not be effective enough to reach the 7.2 percent target of economic growth rate.
“Since the rate of interest is high, there cannot be proper environment for investment and therefore economic growth is not possible,” reads the statement, adding, “It is not sufficient even if attempts are made to improve the finance management by creating funds from some other sources.”
The NCC statement has also requested the central bank to roll back its decision regarding a circular issued on Usance bill arguing that it has had a negative impact on entrepreneurs.
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<p>NCC said that entrepreneurs are having hard time obtaining the desired amount of loan from banks and financial institutions (BFIs) due to high rate of interest and lack of investible liquidity. NCC had given suggestions to NRB to address this problem but the new monetary policy of the central bank has disregarded the suggestion of the private sector, reads the statement.</p>
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'summary' => 'Nepal Chamber of Commerce (NCC) has termed the monetary policy unveiled by Nepal Rastra Bank on July 9 as a continuation of the same old policies of the past.',
'content' => '<p>July 11: Nepal Chamber of Commerce (NCC) has termed the monetary policy unveiled by Nepal Rastra Bank on July 9 as a continuation of the same old policies of the past.</p>
<p>NCC said in a statement that it finds the new monetary policy stagnant although the economic conditions were quite different when the current monetary policy and the monetary policy for the upcoming fiscal year were released.</p>
<p>NCC said that entrepreneurs are having hard time obtaining the desired amount of loan from banks and financial institutions (BFIs) due to high rate of interest and lack of investible liquidity. NCC had given suggestions to NRB to address this problem but the new monetary policy of the central bank has disregarded the suggestion of the private sector, reads the statement.</p>
<p>NCC has also claimed that the monetary policy will not be effective enough to reach the 7.2 percent target of economic growth rate.</p>
<p>“Since the rate of interest is high, there cannot be proper environment for investment and therefore economic growth is not possible,” reads the statement, adding, “It is not sufficient even if attempts are made to improve the finance management by creating funds from some other sources.”</p>
<p>The NCC statement has also requested the central bank to roll back its decision regarding a circular issued on Usance bill arguing that it has had a negative impact on entrepreneurs. </p>
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