Finance Minister urges central bank to lower lending rate

KATHMANDU, MAR 30:

Newly appointed Finance Minister Shanker Prasad Koirala expressed the need of lowering lending interest rate to promote investment in the productive sector.

“The financial institutions need to be encouraged to make investment in productive sectors such as hydropower, tourism and service sector,” finance minister Koirala said during his visit to the Nepal Rastra Bank (NRB), adding that the central bank should provide easier refinancing to these loans so that financial institutions can float loans at lower interest rate.

The finance minister also pointed out that the newly formed government has prioritised attaining stable economic growth.

Minister Koirala also expressed hope that investment friendly environment in the country will improve in the near future and more entrepreneurial ventures will be launched.

“Although overall macroeconomic indicators of the country are also not bad, we need to work harder to improve the indicators for comfortable economic situation,” pointed out finance minister Koirala, adding that the coordination between monetary policy and fiscal policy will help in achieving the desired and comprehensive economic goals.

The finance minister expressed government’s support to central bank on curbing financial crimes and on its attempts at promoting better corporate governance in the financial sector.

During the meeting, governor of Nepal Rastra Bank Dr Yubaraj Khatiwada also expressed the need of coordination between the fiscal and monetary measures for achieving overall desired economic stability and financial sector stability.

The event was attended by deputy governors of NRB Gopal Prasad Kafle and Maha Prasad Adhikary, members of Nepal Rastra Bank’s executive board Prof Dr Shriram Poudel, Dr Ramhari Aryal and Balkrishna Man Singh.

Source: THT