Nepal Chamber of Commerce Submits 35 Strategic Recommendations to Revive Economy and Reform Monetary Policy

The Nepal Chamber of Commerce (NCC) has presented 35 key recommendations to Nepal Rastra Bank (NRB) Governor Dr. Biswo Nath Poudel ahead of the upcoming monetary policy announcement. These proposals are aimed at reviving the economy, improving private sector confidence, and enhancing coordination between fiscal and monetary policies.

Key recommendations include:

a. Debt restructuring for affected businesses and easing working capital loan guidelines.
b. Full risk coverage on real estate loans above NPR 5 million and maintaining the 80:20 loan-to-value ratio for housing.
c. Interest rate control, with suggestions of a 5% base rate and 3.5% spread.
d. Lifting the NPR 150 million cap on stock market loans to boost investment.
e. Resolving the cooperative sector crisis and promoting formal banking of informal funds.
f. Support for electric vehicle imports through up to 80% loan financing.
g. Leveraging over NPR 24 trillion in foreign exchange reserves to fund national development.

The chamber also emphasized the need for:

i. Maintaining a 6% economic growth target and below 5.5% inflation.
ii. Simplifying banking procedures and promoting exports via subsidized credit.
iii. Improving data sharing among banks and promoting asset documentation for domestic investments.

Governor Poudel welcomed the suggestions, affirming that the monetary policy will reflect many of these proposals to stabilize the financial sector and stimulate economic activity.