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NRB unveils new Monetary Policy for Fiscal Year 2017/18

Gorkha Post



KATHMANDU — Nepal Rastra Bank has unveiled the Monetary Policy for Fiscal Year 2017/18 on Sunday amid a function organised in Kathmandu.

The central bank, in a policy, has prioritised lending to the ‘productive’ sector, which encompasses hydropower, agriculture, tourism, export, small and medium industries, pharmaceuticals, cement and garments.

Unveiling the monetary policy for fiscal 2017-18, the central bank directed directed commercial ‘A’ class commercial banks to increase the flow of credit to the ‘productive’ sector by five percentage points to 25 per cent of their total lending by mid-July, 2018.

The central bank has directed ‘A’ class financial institutions to extend 10 per cent of their total credit to agriculture, five per cent to tourism, five per cent to hydro-power and the remaining five per cent to other productive sectors.

This is the first time the monetary policy has determined credit extension for tourism sector.

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As per the new monetary policy, development banks are also required to extend minimum 15 per cent of their total lending to the productive sector, while the requirement for finance companies has been set at 10 per cent.

NRB has also aimed at limiting inflation to seven per cent, in line with the target announced by the government through the budget for 2017-18.

The monetary policy has also doubled the refinance fund to Rs 20 billion. Of this amount, up to Rs 5 billion can be extended as refinancing facility to the hydro-power sector.

The central bank has also adopted a policy that has discouraged corporate deposits in banks and financial institutions. NRB has fixed the policy rate of three per cent under the interest rate corridor.

The central bank has also allowed hotels to provide exchange facility of up to $300 to their clients on top of the bill amount raised by the hotels.

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TIA to operate services for 21 hrs daily from upcoming mid-May





KATHMANDU — Minister for Culture, Tourism and Civil Aviation Rabindra Adhikari has said that the Tribhuvan International Airport (TIA), the only international airport in the country, would be operated for 21 hours daily.

In an interaction organized by the Nepal Tourism Infrastructure Development Council here in the Ministry on Tuesday, Minister Adhikari shared that the Ministry was preparing to operate the TIA for 21 hours daily from upcoming mid-May.

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He added that the move was targeted to lessen air traffic pressure as the TIA is facing acute air traffic pressure as of late.

He added that though he was planning to operate 24 hours services in the TIA, it takes time to this effect. He also shared that night flights currently available from Kathmandu to Dangadhi will be extended to Bhadrapur of Jhapa in the near future.

Experts in tourism and culture sectors suggested Minister Adhikari to adopt effective plans and programmes for the development of these sectors.

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