Kathmandu. Nepal Automobile Importers and Manufacturers Association (NAIMA) has expressed displeasure over the monetary policy unveiled by the Nepal Rastra Bank (NRB) for the fiscal year 2082/83 BS.

It has said that the suggestion given to the Rastra Bank has not been included in the monetary policy. Naima has requested to review the debt ratio arrangement in accordance with international standards, nature of vehicles and market demand for long-term improvement and balanced development of the automobile sector.

It has been clearly stated that 80-20 percent loan ratio should be maintained for all types of vehicles. However, it is very disappointing that no such policy has been included for the automobile sector in the monetary policy.

Although the policy aims to increase credit supply as a whole, it does not include any clear and targeted measures to expand access to auto credit. “Which was necessary for the improvement of the automobile market,” it said, adding that while policies for other sectors such as real estate, stock markets and other industries were clearly included, the automobile sector appears to have been neglected. ‘

It has been reminded that the suggestion was submitted at the initial stage of monetary policy formulation that the beneficiary company should be allowed to open letters of credit (LC) in Yuan while importing vehicles produced in China and transported from China.

Naima said the monetary policy has ignored the practical needs of the automobile sector. Similarly, in the context of vehicle loans being considered safe loans, it was suggested to reduce the rate of risk-weighted assets from the current 100 percent to 75 percent. It is believed that such a provision will facilitate the flow of credit and help in the expansion of the market.