21-point suggestion of Biratnagar businessmen to the Finance Minister

BIRATNAGAR: JULY 22 – The Morang Trade Association has drawn the government’s attention to the issue of inclusion in the monetary policy. The meeting with Finance Minister Janardan Sharma suggested 21 points be included in the monetary policy.

Prakash Mundada, the coordinator of the team and president of the association, said that the team of the association met Finance Minister Sharma and suggested to him the issues to be included in the upcoming monetary policy. The team consisted of trade union president Mundada, senior vice president Navin Rijal, former presidents Pawan Kumar Sarda and Mahesh Jaju.

According to Nabin Rijal, senior vice-president of the association, the suggestion was made on the need for monetary policy to revive the troubled industries. In the suggestion given by the Morang Trade Association for the monetary policy 2078/07, it is mentioned that due to the effect of COVID-19, the interest of all the debtors should be deducted and the deadline for repaying their debts should be extended. He suggested that the current spread rate of the banking sector should be maintained at a maximum of 3.5 per cent, a limit of Rs 500 million for public limited companies and a limit of Rs 200 million for private companies.

The process of borrowing and refinancing should be made easy and accessible for the entrepreneurs and the refinancing arrangements should be implemented vigorously. In order to protect the rights and interests of the indigenous industrial establishments which have incurred losses and negative impact by implementing the lockdown implemented by the Government of Nepal. It has also been suggested that arrangements should be made for micro-monitoring for the next three years.

The union suggested that the service charges, renewal fees, etc. charged by the banks for the period of lockdown announced by the government should be abolished, adding that emphasis should be laid on the utilization of resources to save loans and capital of industrialists by reducing bank guarantee, administrative and other fees.

It has also been said that loans should be renewed at low rates with special concessions for tourism, transport, hotels, poultry, resorts, etc., which have been severely affected and closed due to the impact of COVID-19. It is suggested that the unsecured loans should be provided to the industries and businesses operating without loans at the minimum interest rate on the recommendation of the concerned organizations and the limit of personal loans should be increased for the entrepreneurs to keep their assets as collateral for an investment.