Kathmandu. Physical property worth Rs 84.45 billion has been damaged across the country due to the Genji agitation. The report titled ‘Understanding the Genji Movement: Root Causes, Reality and Roadmap for a Strong Nepal’ released by the Ministry of Finance has pointed out the need to expedite reconstruction.

The report states that now is the right time to expedite the reconstruction after the physical damage caused during the agitation. The report states that it would be appropriate for the government to take loan from the banking sector and invest in reconstruction as there is sufficient liquidity in the banking sector, demand for loans is low in the market and interest rates are historically low.

The report said that such investment would help to stimulate the economy by boosting national income and aggregate demand. In addition, the report points out that now is the right time for the private sector to invest in reconstruction. It is said that the private sector can increase investment in reconstruction as the interest rate is cheaper in the banking sector.

Similarly, Nepal Rastra Bank (NRB) has also suggested that the government should provide long-term loans at cheaper rates for the reconstruction of the private sector. It is expected that the 10-year loan will boost the morale of the private sector and revitalize the economy.