Interest rate hiked

Mon, Jun 20, 2011 12:00 AM on Others, Others,
The Nepal Rastra Bank (NRB) on Sunday decided to hike the interest rate on special refinancing and financing under the lender of last resort policy to 10 percent from existing 7 percent. Terming these facilities ‘extraordinary cases’, the central bank said the interest rate was fixed as a penal rate. “Those who have already received refinancing from the central bank including Vibor Bikas Bank will have to pay 10 percent interest,” said NRB Spokesperson Bhaksarmani Gyawali, “Charging a panel rate on such extra-ordinary liquidity injection is an international practice,” he said.

Source: Kantipur