Policy not encouraging for productive sector
KATHMANDU:
Though the Monetary Policy has claimed to focus on increasing productivity by channeling the lending, it has miserable failed.
The share of agriculture sector — one of the major sectors — loan stood at only three per cent in the total lending by the 10 months of the current fiscal year. “The central bank has to put extra effocts to increase the lending to the agriculture sector,” central bank governor Dr Yubraj Khatiwada said.
Similarly, the commercial banks’ private sector lending has also increased by 11.6 per cent, whereas development banks’ and finance companies lending to the private sector has increased by 29.3 per cent and 15.9 per cent, respectively.
To encourage lending to productive sector the central bank has started the refinancing facility to the banks and financial institutions since last year.
The central bank ha floated Rs 5.38 billion to nine commercial banks, seven development banks and one finance company under refinance facility to productive sector against their good loans.
The foreign currency reserve has also showed a growth of Rs 2 billion to Rs 270 billion that is enough for seven months of goods and services import, he said, adding that the exports has increased by 5.6 per cent, whereas inports has also increased by 5.7 per cent by the first 11 months of the current fiscal year. The Balance of Payment (BoP) recorded Rs 11.47 billion deficit in the period, according to the central bank.
Similarly, the remittance has posted an increment of 10.8 per cent to Rs 206.66 billion by mid-May that comes to 14.1 per cent in dollar terms.
The policy has also allowed the facility for the renewal of advance payment certificate of the exporters through related banks and finance company. The advance payment certificate issued by the commercial banks for the exporters will initially be allowed for a year.
Similarly, the transation through cards between nepal and Bhutan can be done in Indian Curreny, the Policy stated.
Serious concern
Bullion traders expressed their disappointment as the Monetary Policy 2011 -12 failed to include their suggestions. “The Monetary Policy has not included our suggestions on supply shortage and Indian Currency circulation,” said president of Nepal Gold and Silver Dealer’s Association Tej Ratna Shakya. “Most of the programmes in the Monetary Policy are continuation of the last fiscal year,” he said, adding that it has mentioned nothing about the gold and silver trading. Similarly, vice president of Federation of Handicraft Association of Nepal (FHAN) Hem Ratna Shakya also expressed his dissatisfaction over the Monetary Policy for not bringing any concrete steps that could help them increase exports.
Source: THT
Though the Monetary Policy has claimed to focus on increasing productivity by channeling the lending, it has miserable failed.
The share of agriculture sector — one of the major sectors — loan stood at only three per cent in the total lending by the 10 months of the current fiscal year. “The central bank has to put extra effocts to increase the lending to the agriculture sector,” central bank governor Dr Yubraj Khatiwada said.
Similarly, the commercial banks’ private sector lending has also increased by 11.6 per cent, whereas development banks’ and finance companies lending to the private sector has increased by 29.3 per cent and 15.9 per cent, respectively.
To encourage lending to productive sector the central bank has started the refinancing facility to the banks and financial institutions since last year.
The central bank ha floated Rs 5.38 billion to nine commercial banks, seven development banks and one finance company under refinance facility to productive sector against their good loans.
The foreign currency reserve has also showed a growth of Rs 2 billion to Rs 270 billion that is enough for seven months of goods and services import, he said, adding that the exports has increased by 5.6 per cent, whereas inports has also increased by 5.7 per cent by the first 11 months of the current fiscal year. The Balance of Payment (BoP) recorded Rs 11.47 billion deficit in the period, according to the central bank.
Similarly, the remittance has posted an increment of 10.8 per cent to Rs 206.66 billion by mid-May that comes to 14.1 per cent in dollar terms.
The policy has also allowed the facility for the renewal of advance payment certificate of the exporters through related banks and finance company. The advance payment certificate issued by the commercial banks for the exporters will initially be allowed for a year.
Similarly, the transation through cards between nepal and Bhutan can be done in Indian Curreny, the Policy stated.
Serious concern
Bullion traders expressed their disappointment as the Monetary Policy 2011 -12 failed to include their suggestions. “The Monetary Policy has not included our suggestions on supply shortage and Indian Currency circulation,” said president of Nepal Gold and Silver Dealer’s Association Tej Ratna Shakya. “Most of the programmes in the Monetary Policy are continuation of the last fiscal year,” he said, adding that it has mentioned nothing about the gold and silver trading. Similarly, vice president of Federation of Handicraft Association of Nepal (FHAN) Hem Ratna Shakya also expressed his dissatisfaction over the Monetary Policy for not bringing any concrete steps that could help them increase exports.
Source: THT
