Kathmandu. Bankers’ Association President Santosh Koirala has questioned how long the banks and financial institutions will not pay dividends.

He raised the question at a pre-monetary programme organised by the Society of Economic Journalists of Nepal (SEJON) in the capital on Sunday. Koirala said that the Rastra Bank should now take some easy policy for this.

He said that a strong asset management company is needed for the growing bad loans. Speaking on the occasion, he said that the loan has been disbursed at 6 percent base rate. However, the flow of credit has decreased, he said. According to him, the loan, which was up to 15-16 percent in the past, is not going to the low rate now, which is not a demand.

He said the economy could pick up the expected pace until the loans, including real estate, bounce back. He said that the economy would not improve until these sectors bounced from the loan share market and real estate before the implementation of the current capital loan policy. It will take at least 2-3 years.