KATHMANDU, FEBRUARY 2
CPN (UML) Chair KP Sharma Oli has stated that provisions should require the consent of both parties for increasing the bank interest rate.
Addressing the 7th National Convention of the Nepal Bank, Insurance, and Financial Institutions Employees' Association at the UML Central Office in Chyasal of Lalitpur today, he called for provisions disallowing changes in the bank interest rate without the agreement of both sides. The UML Chair accused banks of unilaterally increasing interest rates.
"The interest on loans taken from the bank reaches 10, 12, and up to 14 percent over time, and when the borrower goes to the bank to repay the loan, the increased interest causes problems," he said.
He suggested changing the interest rate with the consent of both the lender and borrower, stressing that the bank's job is not only to realize collateral and loans. Former Prime Minister Oli also called for monitoring whether the amount invested by the banks is properly utilized.
He reiterated that banks should support development and provide loans to those eager to start a venture with small capital.
Former Finance Minister Dr. Yub Raj Khatiwada urged the government to make efforts to improve the economy, as the economic situation is deteriorating.
