Kathmandu. Kathmandu: The Monetary Policy of Nepal Rastra Bank (NRB) for the upcoming fiscal year 2082/83 BS is positive and financially convenient, according to the Nepal Chamber of Commerce.

The Chamber expressed the belief that the monetary policy would revive the financial sector through economic revival and easy credit flow.

In a press release issued today, the Chamber said that the current liquidity problem would be solved if the target of 12 percent credit expansion set by the monetary policy could be met.

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

The Chamber also welcomed the provision mentioned in the monetary policy to increase the loan limit for the construction and purchase of private residential houses from Rs 20 million to Rs 30 million. Similarly, the provision of maintaining the loan price ratio up to a maximum of 80 percent for the flow of credit and a maximum of 70 percent in the case of others will expand the business of the real estate sector and it will help in keeping the economy moving.

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

“The guidelines regarding current capital loans will be revised as per the need based on the nature of business of agriculture, small and cottage industries, education, health, sports, communication and media houses, and the loan repayment-income cycle,” the chamber said in a statement.

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.