PHAP seeks NRB intervention on soaring bank interest rate

Hoteliers under PHAP at NRB Pokhara. Picture courtesy: Bharat Raj Parajuli

Pokhara—Paschimanchal Hotel Association Pokhara (PHAP) has urged the Nepal Rastra Bank (NRB), the central bank of Nepal, to put its foot down against the soaring and unstable interest rates over the loans issued by different banks and financial institutions to the hotels especially tourism sector.

Submitting a memorandum to NRB governor Chirinjibi Nepal and its Pokhara brach chief director Pomnath Gautam Tuesday, PHAP executive body urged the authorities to interfere the unilateral increment of interest rate in the loan mobilized in the hotel sector.

PHAP Pokhara chairman Bikal Tulachan informed that the bank spread rate is also excessively high which has hampered the tourism sector and entrepreneurs too. PHAP immediate past president Bharat Raj Parajuli urged the governor to bring the spread rate in natural state. PHAP has demanded the NRB to decrease spread rate to 3 point.

Stating that the hotel sector is an important part of Nepalese economy and long term contributor of Nepalese GDP, PHAP has cautioned the NRB that the hotel business would be collapsed if the issue of high interstate rate is remained unsolved.

The memorandum further states that the hotel sector is the one of the main contributory sources of foreign currency as well as the source of government revenue. PHAP said that the burden of loan is really an unbearable and NRB should intervene and regulate the banks’ bossing around soon.

Published on: February 6, 2019 12:50 pm

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