Kathmandu. KATHMANDU: The Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has suggested the Finance Committee of the House of Representatives (HoR) for the monetary policy for the coming fiscal year 2083/84 BS.

FNCCI President Anjan Shrestha said this while presenting the FNCCI’s suggestions at a meeting of the Finance Committee held in Singha Durbar.

Drawing attention towards the weakness of domestic economy despite the strong external economic indicators, he stressed that the monetary policy should boost the confidence of the private sector.

According to Shrestha, the foreign currency reserves have increased by 38.3 per cent and are in a position to sustain the import of goods and services for 19.2 months, the demand for loans has contracted despite the balance of payment of Rs 863 billion.

The main problem is not the lack of interest rates, but the limited ability of banks to lend money. As the core capital ratio of many banks has reached the low ceiling, the NRB should adopt flexibility in capital adequacy and provisioning system,” he said.

In such a situation, the federation has presented various suggestions on the management of non-performing assets, current capital loan, debt restructuring and classification, concessions to the productive sector and digital banking and payment.