By A Staff Reporter
Kathmandu, Jan. 31: Nepal Chamber of Commerce (NCC) said on Sunday that to achieve double-digit rate of economic growth, there should be single-digit interest rate on investments.
Untamed growth in the bank interest rate has created multiple challenges for the entrepreneurs running their business with the financing from banks and financial institutions, said the business body in a statement.
It has drawn attention of the Nepal Rastra Bank at the time when the interest rate is rising citing the liquidity shortage.

NCC made the comment while submitting its 7-point suggestions virtually for the mid-term review of the Monetary Policy of the Fiscal Year 2021/22. On the occasion, NCC President, Rajendra Malla, said to the Governor of the NRB, Maha Prasad Adhikari to maintain single-digit interest rate on bank credit mobilisation.

He also urged the central bank to take initiative to decrease the increment that the BFIs made in the base rate. “The 3-4 per cent growth in the base rate by the BFIs has created challenges for the entrepreneurs at the time when the latter are making efforts for the business and economic revival,” said the NCC.

It also emphasized on channelising 5-10 per cent of the remittance to the projects like infrastructure development and hydroelectricity generation that supports capital formation and economic growth. “Therefore, the government should promote the inflow of remittance through the banking channel,” read the statement.

The business body has welcomed the NRB’s policy to offer additional 1 per cent interest rate on deposits of remittance.