Kathmandu, April 26:

With all economic activities coming to standstill, the banking sector witnessed a sloth in its activities.

Bankers said although it is difficult to estimate losses in exact figures, transactions dropped by 90 per cent. Prithvi Bahadur Pande, chief executive officer (CEO) at Nepal Investment Bank, (NIB) said that there were no complications over deposits but LCs and guarantees were affected most.

As no sale has taken place, companies are finding it difficult to repay bank loans, he said.

The Nepal Rastra Bank (NRB), categorising this Jan Andolan as a ‘special circumstance’, should soften its stance on loan repayment.

“This strike has given us a golden opportunity. The country has been highlighted in the international media. If things go well and peace prevails, the tourism industry would boom and prosperity is inevitable in the long run,” Pande said. There is light at the end of the tunnel, he added.

Radesh Pant, president of Bankers’ Association of Nepal, said the bandh has affected the transactions seriously. There would be a repayment problem leading to less revenue generation, he said.

“With donor countries supporting the movement, economic activities would gain in momentum. If we can restore peace in the country, there is a bright prospect for investment,” he added.

Kamal Subedi, manager, Development Credit Bank Ltd (DCBL), suggested that the government provide a tax holiday, as it has been difficult for banks to recover loans.

The restoration of democracy would certainly attract foreign aid and investment and the inflow of remittance would also be good, he hoped.

Democratic environment can lure more of the foreign money and trust, the bankers hoped.