KATHMANDU, Dec 24: Ravi Singh, president of the Federation of Contractors’ Associations of Nepal (FCAN), has said that the construction industry is in a crisis due to the lack of liquidity in the financial system. According to him, the construction industry has not been able to grow as fast as it should due to the lack of liquidity in the banking system.
He said that due to the COVID-19 pandemic for two years, there was no work but an increase in expenses due to which the construction entrepreneurs were facing extreme financial problems. Singh also said that it has been difficult to get even Rs 100,000 to Rs 200,000 in loans from the banks in recent times.
Singh said that the bank loan of the construction entrepreneurs alone is Rs 340 billion. He also said that he has been demanding the release of five percent deposit of the construction entrepreneurs as bank guarantee to ease liquidity in the construction industry for the past one year.