Chamber of Industries, Morang held an interaction on Working Capital Loans Guidelines, 2079 issued by the Nepal Rastra Bank (NRB). The guidelines related to working capital loans flowing through banks and financial institutions (BFIs) will come into effect from October 18, 2022.
On the occasion, CIM President Suyash Pyakurel opined that while it is relevant for the Nepal Rastra Bank to closely monitor the issues of loan utilization and take action against those involved in capital flight, in the case of the productive sector, there should be a provision that the operation of the productive industry should not be hindered by the limit put on working capital loans.
He said that if such loan limit is set for the industries that buy and store the raw materials needed for the whole year once a year, with the implementation of the guidelines, there could be difficulty in the operation of such industries and businesses and may have to shut down the industries.
On part of the industries, the working capital remains on hold for six months owing to production, storage, sales and return, he added.
Further, the CIM President said due to the increase in the cost of raw materials, fuel, and interest rates in the international market, there is also an increase in the logistics expenses of the industry, and it is difficult to establish unity in determining the limits between the estimated financial statement and the actual requirement of the working capital, the implementation of the guidelines would create difficulty in the operation of industries.
