Lockup system on interest rate is necessary for financial stability: Chamber President Malla

KATHMANDU: Rajendra Malla, President of the Nepal Chamber of Commerce, has stated that the lock-off system in interest rates should be implemented for economic sustainability.

Borrowers are in trouble, according to President Malla, because of volatile interest rates, and an investment environment is not being created.

According to President Malla, there will be no financial sector instability if a fixed interest rate is maintained at the outset of the loan process for various purposes such as industrial business operation, real estate, and agriculture and is not changed later.

Addressing the festival organized by Dolakha Chamber, President Malla said that due to the high interest rates in the bank financial institutions, business activities are often halted.

‘The interest rate remains at 15/16 percent,’ said President Malla. There is no environment in which to do business with loans; a situation has arisen in which industrialists are fleeing.’

President Malla stated that even though the bank financial institution charges a high premium, the borrowers are in trouble. ‘It is necessary to create an environment of financial stability and investment for economic development and prosperity,’ he said.

President Malla emphasized the importance of collaboration between the private and public sectors in order to create new jobs through collective investment in industry and small businesses. President Malla stated that agriculture, tourism, and small industries should be the state’s top priorities.

In another context, President Malla stated that, while Dolakha is a leader in agricultural production, the anticipated benefits have not been realized. President Malla claims that the Dolakha collective farming system can boost production. He stated that the Dolakha Chamber of Commerce will coordinate the marketing of district-produced agricultural products.