No liquidity crunch in market: NRB

Kathmandu / Feb 1: Nepal Rastra Bank (NRB) has clarified that there is no liquidity crunch in the finance market.

Addressing a programme organised in the Capital today by Nepal Bankers’ Association, Deputy Governor Chinta Mani Siwakoti said there is still Rs 30 billion that could be invested in the market. “It does not mean big development projects lack adequate money for investment, but there is not a proper management of such money,” he said.

Calling for increasing saving account interest rate to attract as much as deposit, he stressed the need for banks and financial institutions to invest in the sector that would increase production.

President of the Federation of Nepalese Chamber of Commerce and Industry Pashupati Murarka said the private sector remaining as a promoter of country’s economic development was facing problems in getting loans. Banks and finances have failed to disburse loan sufficiently, he said, calling on them not to increase interest rate haphazardly.

Association President Anil Keshari Shah said banks and finances did not have sufficient budget to invest in huge development projects. RSS