NRB holds talks with IFC

KATHMANDU, MAY 11:

The central bank governor has emphasised on making Micro, Small and Medium Enterprises (SME) loans project-based instead of collateral-based.

“As most of the micro SME entrepreneurs do not possess properties to pledge for loans they have limited access to finance,” said Nepal Rastra Bank (NRB)’s governor Dr Yubaraj Khatiwada during a meeting with International Finance Corporation (IFC)’s South Asian director Thomas S Davenport.

Dr Khatiwada and the IFC delegation headed by Davenport held a discussion on Proposal for Designing and Developing ‘SME segmentation Database’ at central bank.

“The SME sector does not only require financing but also needs training and technical support to succeed,” said Dr Khatiwada, citing the example of Bangladesh where SME sector is booming.

He also expressed the need to inculcate habit of seeking financial aid from formal banking sources among micro and small entrepreneurs. During the discourse Dr Khatiwada also pointed out the possible areas of support required in Nepal to promote micro and small enterprises and the scope of the contribution from IFC.

Source: THT