Entrepreneurs demonstrate against increase in banks interest rate

Industrialists and entrepreneurs have demonstrated to protest the increase in interest rates by banks here today.

They held a symbolic protest demonstration putting forth various demands including provision for a fixed interest rate, lowering the premium increased due to the base rate, and decreasing the service-charge taken by banks and financial institutions.

Saving investment has increased due to different reasons including a rise in interest rate, which they demonstrated at Maitighar Mandala to draw the attention of bodies concerned, said Vice-President of the Federation of Nepalese Chambers of Commerce and Industry, Dinesh Shrestha.

Shrestha shared “Entrepreneurs and industrialists facing problems joined the protest programme spontaneously. We hoped that the attention of the bodies concerned will be drawn towards our demand.”

The symbolic protest was joined by FNCCI provincial and district chapters and thematic committees, according to Shrestha who shared with the RSS that they planned to shut the district-based industries and enterprises from Sunday as the continuity of the protest.

The participants displayed placards giving messages such as “we need banking services, but the increasing interest rate is becoming unaffordable; we face challenges to sustain business due to a high-interest rate; the sustainability of the industry, trade is a must to support nation’s economy”.

Last week, the FNCCI delegation submitted a memorandum to the Nepal Rastra Bank, seeking its intervention to resolve issues in the finance sector.

They demand the central bank’s role in the management of liquidity issues, for the financial stability of interest rates, price stability, and the management of external areas.

Besides, they want the central bank not to implement the amendments in the Current Capital Loan Guidance, to ensure extra time for the payment of loans and interest, undertake a detailed study about the amendment to the credit-deposit ratio, and take efforts to increase the capital expenditure and so on. (RSS)