Kathmandu. The Chief Executive Officers (CEOs) of commercial banks on Tuesday met Finance Minister Dr. Swarnim Wagle had called him to the ministry for a meeting.

During the meeting, the CEOs gave similar suggestions to Minister Wagle. Minister Wagle, in his welcome speech to the CEOs, expressed concern over why there was no loan growth.

Why are entrepreneurs hesitant to expand their investment? Why has the demand for loans not increased even when interest rates are historically low? Why has the excess liquidity in the banking system not been converted into production and investment?

Does the solution lie in monetary policy, fiscal policy, or private sector confidence? What structural reforms are needed to increase the flow of credit to the productive sector of the banking system? What is the new approach to monetary policy, regulation and supervision? Such questions were asked.

In response, the CEOs have given priority to the issues of stopping the grip on the private sector, business environment, not being afraid to give loans, business environment, opening of PPA in hydropower, big industries and expediting the contract.

One of the CEOs participating in the discussion said that the government should stop arresting businessmen and boost the morale of the private sector

He said he had made suggestions.

Recalling the police operation conducted at the residence of Biratnagar-based industrialist Beni Gopal Mundra on Monday

The government’s crackdown has said that the morale of industrialists will be weakened. This is the reason why the minister was informed that the loan could not go despite low interest rates and high liquidity in the banking system, the CEO said.

Santosh Koirala, president of the Bankers’ Association, said that they have suggested to boost the morale of the private sector to increase the demand for loans when the interest rate is low. During the meeting, he said that the government suggested to start the works of big projects on time.

He said that the demand for cement and rods will increase when big projects start on time, which will increase the demand for loans.

Koirala also suggested opening the Power Purchase Agreement (PPA) on time and facilitating it at a time when the demand for loan is increasing in the hydropower sector.