Wednesday, December 14, 2011

IMF concerned over low lending by banks

The visiting International Monetary Fund (IMF) team has suggested increasing lending as the banks have enough liquidity at present, control recurring expenses and increase capital expenditure, and improve revenue administration to meet the revenue target.
During the meeting with the team in his office on Wednesday, finance minister Barsha Man Pun informed them that the government is encouraging the banks to invest on productive sectors and trying to increase capital expenditure.
"The government has also been able to solve problems in the state oil monopoly and Nepal Electricity Authority," he informed, adding that the revenue administration has also been improved compared to last year.
"The inflation will remain in single digit, remittance inflow has improved and the country has currently Rs 330 billion foreign currency reserves," he informed, adding that the government will also achieve its growth target. "The programmes for Nepal Investment Year 2012-13 has been finalised and already identified key areas like hydropower, agriculture, tourism and infrastructure."

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