July 19 : Stakeholders believe that the monetary policy for fiscal year 2020/21 unveiled by Nepal Rastra Bank (NRB ) on Friday would support the financial sector battered by the coronavirus pandemic. The private sector has welcomed the policy issued by the central bank and stressed on its practical and effective implementation.
“Overall the monetary policy is practical and timely. It would have positive impact on the nation’s economic and financial sector that is dented by the pandemic only through the effective execution,” the participants of a virtual interaction organised yesterday (July 18) by Society of Economic Journalists of Nepal (SEJON) said about the monetary policy. Former governor of NRB, Dr Dipendra Bahadur Chhetri said the central bank should move forward for the effective implementation of the monetary policy by taking the banks and financial institutions into confidence.
He also suggested forming a mechanism in NRB for resolving any complexities that might arise in course of executing the policy. Banker Bhoj Bahadur Shah said the monetary policy reflected the aspirations of the stakeholders. Nepal Bank chairperson Basudev Adhikari said the monetary policy was balanced, realistic and responsible. He believed that the policy would support the revival of the economy and making it strong while rendering the capital market dynamic. He added that Nepal Bank is preparing to double the concessional loan. Former banker Anal Raj Bhattarai welcomed the monetary policy saying it is going to further encourage the private sector.
He said the policy has addressed to remove the problem of the contraction seen in cash flow due to the impact of COVID-19 on trade and business. The policy has also used monetary tools to reinvigorate the trade and business sector and given some concessions to it as well by maintaining fiscal balance. Nepal Chamber of Commerce vice-president Kamalesh Agrawal said the monetary policy has addressed most of the demands of the private sector and it has given big relief to all types of entrepreneurs and businesses affected by COVID-19.
He suggested making the work procedure and guidelines for re-financing business-friendly and convenient. Federation of Nepalese Chambers of Commerce and Industry (FNCCI)’s bank, finance and insurance committee president Saurabh Jyoti also said the monetary policy has brought some relief to the industrialists and businessmen in the present adverse situation and has also addressed the problems of the private sector.
He also suggested implementing a sound re-financing policy and its practical implementation. Jyoti shared that the policy has however not incorporated the transport sector that has created the most employment. Confederation of Bank and Financial Institutions and entrepreneur Pawan Golyan hailed the monetary policy saying it was oriented towards reviving the economy battered by COVID-19.
He said the policy of investing about 15 per cent of the total loans in agriculture and 10 per cent of total loans in energy sector and further facilitating concessional loans was laudable. He stressed on promptly bringing guidelines required for the implementation of the monetary policy for reinvigorating the economy. RSS
