Kathmandu. Kathmandu: The Nepal Chamber of Commerce (NCC) has said that the monetary policy for the fiscal year 2082/83 BS is positive and financially convenient.

According to the Chamber, the monetary policy for the next fiscal year will help the financial sector to move through economic revival and easy lending. The chamber believes that the current high liquidity problem can be solved if the loans to the private sector can be extended by 12 percent for the coming year.

“The bank rate, which is the upper limit of the interest rate corridor, has been reduced from 6.5 per cent to 6 per cent and the policy rate from 5 per cent to 4.5 per cent,” the chamber said in a statement. It is believed that this will not allow liquidity management and interest rates to increase in the market. ’

The Chamber has welcomed the provision mentioned in the monetary policy to increase the loan limit from Rs 20 million to Rs 30 million for the construction÷buying of private residential houses.

The chamber believes that the provision of maintaining the loan price ratio up to a maximum of 80 percent and in the case of others up to 70 percent will expand the business of the real estate sector and it will help in keeping the economy moving.

The Chamber has welcomed the provision mentioned in the monetary policy for rescheduling and restructuring of loans disbursed to housing and real estate businesses. In view of the slowdown in the construction business, the provisions made in the monetary policy for the restoration of the sector are positive, the Chamber said.

According to the Chamber, the guidelines regarding current capital loans will be revised as per the need based on the nature of business of agriculture, small and domestic industries, education, health, sports, communication and media houses, and the loan repayment-income cycle.

According to the Chamber, the classification of existing loans and the provision of reviewing the loan loss arrangement should be further clarified as per the need. The Chamber has welcomed the provision of providing agricultural or commercial loans up to Rs 1 million. According to the Chamber, the provision of including loans up to Rs 30 million in the loans disbursed to small and medium enterprises and counting the loans disbursed in the specified sector is also positive. The chamber believes that this provision mentioned in the monetary policy will encourage small agricultural loans and provide cheap interest rate loans.

According to the Chamber, the borrowers of the hydropower sector will get relief if the provision related to interest capitalization of loans disbursed in the energy generation sector is reviewed. The Chamber has welcomed the provision to increase the single customer loan limit from Rs 150 million to Rs 250 million for margin type loans disbursed by banks and financial institutions.

The Chamber has welcomed the provision of policy facilitation in the existing system of blacklisting due to cheque dishonour. According to a statement issued by the Chamber, efforts are being made to facilitate the current system of blacklisting due to cheque bounce.

The Chamber welcomed the increase in exchange facility to US¥ 3,000 from the current provision of providing exchange facility up to US¥ 2,500 per time to Nepali citizens visiting countries other than India.

Similarly, the Chamber has suggested to make its practical implementation effective, saying the provision of providing collateral-free loans of Rs 300,000 to Rs 500,000 to youths going for foreign employment is positive.

The chamber has stated that the current capital loan guidelines should be scrapped in view of the current financial situation instead of reviewing it. According to the Chamber, the economy should be revived through effective coordination of the budget and monetary policy for the current fiscal year.