Make work procedure simple for refinancing: NC

Kathmandu - The major opposition Nepali Congress has suggested Nepal Rastra Bank to simplify the work procedure relating to refinancing as stated in its monetary policy. The work procedure and circular on refinancing can be simplified to create atmosphere favourable for its maximum utilization. NC's central special committee on investment, infrastructure and employment stated that some important issues suggested by it earlier were also included in the recent monetary policy.

Committee coordinator and lawmaker Binod Chaudhary said the availability of monetary sources for concessional loan is good incentives to rescue the entrepreneurs who have suffered worst by the COVID-19 crisis. "Now the refinancing scheme needs to be simplified and transparent," he reiterated. Stating that though the monetary policy had guaranteed the availability of resources for the restoration of economy, he said the purpose of the policy would remain unmet if there was no correction for investment environment.

The new monetary policy has announced the provision for increasing ceiling of guided credit programmes in agriculture, energy and tourism up to 40 percent by fiscal year 2080/81 BS. The policy suggested the government objective to gradually increase the investment ratio (existing 25 percent) in the programmes concerning areas of priority, the committee said and called for reconsidering for increasing pressure on bank and financial institutes towards directed investing.

It was welcome to keep the use of all components including provisions relating to agriculture and energy certificates of deposits and long-term repo open for the availability of investment resources, the committee added. It has reached the conclusion that to limit inflation at seven percent is possible only through the expansion of investment, production development and import promotion. It is challenging to keep inflation under control to protect poor and vulnerable community when consumers' purchasing capacity was dwindling due to growing unemployment and a little job opportunities.

The committee has welcomed suggestions for increasing the facility for re-financing from Rs 100 billion to Rs 200 billion, flexibility in CCD ratio for liquidity support for long term repo and bank and financial institutions, for extending deadline for loan payment, and for an increase of loan ratio against share for improvement of share market.