Monetary policy comes to aid of handicraft industry

Kathmandu - The monetary policy recently brought by the Nepal Rastra Bank (NRB) for fiscal year 2020/21 has addressed the concerns of the handicraft industry. The handicraft industry has been annually contributing around Rs 20 billion to the national economy. The Federation of Handicraft Associations of Nepal (FHAN) said the monetary policy has addressed the handicraft industry and business, which has been dented by the global pandemic of coronavirus, albeit a little bit.

FHAN's Officiating Director General, Rishi Raj Subedi said it was a welcome step that the monetary policy has been issued addressing even the practical aspects and in a way to supporting the implementation of the provisions made in the budget for fiscal year 2020/21.

"It is practical that provisions have been made for issuing loan to small and cottage industries in concessional interest, for extending the payment of demand loan and cash credit with the payment period until July 15 till Mid-January 2021 and for payment of instalments and the interest of the loans issued to the business and enterprises affected less and to medium degree due to COVID-19 until Mid-January 2021.

These provisions would help revive the economy hit hard by COVID-19," he said. The Federation welcomed the monetary policy saying it has provided relief to the entrepreneurs in the context of cancellation of orders for export and the goods already produced remaining in stock as they could not be sold.

Similarly, Officiating Director General Subedi said the extension of the timeline of issuing the certificate of advance payment in the name of the Nepali exporter after receiving foreign currency from one month to four months as a positive provision. A delegation of FHAN led by its president Surendra Bhai Shakya had met with NRB Governor on July 1 and presented suggestions to be included in the Monetary Policy for Fiscal Year 2020/21. The handicraft industry and business directly or indirectly employs more than a million people.