Pokhara, February 6

Western Regional Hotel Association, Pokhara, has urged the central bank to intervene to bring down the soaring interest rate on bank loans.

Citing the high and frequently changing interest rate on loan provided by banks, a team of WRHA Pokhara led by Chairperson Bikal Tulachan had reached NRB Pokhara branch to submit a memorandum to Nepal Rastra Bank Governor Chiranjivi Nepal through the chief of the branch Director Pomnath Gautam. The team also handed over a separate memorandum to Gautam seeking to bring down the spread rate to three per cent.

“As tourism makes a great contribution to the country’s GDP and helps bring foreign currency, the government and the central bank must do something to address our concerns,” said Tulachan, adding that the spread rate at present was very high.

“Unpredictable and soaring interest rate is a matter of worry for entrepreneurs so the central bank must do something so that we are able to continue our business,” said WRHA Pokhara former chairperson Bharatraj Parajuli, during a meeting with Parajuli today.

Meanwhile, Pokhara Chamber of Commerce and Industry has also expressed concerns related to the unilateral increase of interest rate on the loan provided by banks and financial institutions. He also warned of an agitation if the increased interest rate was not  brought down. Issuing a statement today, the association has sought interest rate adjustment by mid-February.

“It is due to the unfortunate spike in interest rate on loan that we have witnessed steady increase in operating cost of our businesses and almost arrived to a point where we have no option but to shut our business for good, while the same has discouraged prospective foreign investors,” reads the statement signed by PCCI Chairperson Damu Adhikari.

The association also organised an interaction here today to voice concern about the issue.