Increased govt expenditure and improved BoP necessary to ease liquidity crisis: NRB Governor Adhikari

Published On: September 3, 2022 08:05 PM NPT By: Republica  | @RepublicaNepal

KATHMANDU, Sept 3: Nepal Rastra Bank (NRB) Governor Maha Prasad Adhikari said the liquidity crisis with banks can be corrected only with an improvement in the country’s balance of payments (BoP) position and government’s increased expenses on a periodic basis.

Speaking at a program organized to mark 24th Annual General Meeting (AGM) of the Society of Economic Journalists Nepal on Saturday, NRB Governor Adhikari made the remarks in view of the liquidity crisis that continues to persist in Nepal’s banking system. Giving an example of an increased bank deposit of Rs 167 billion during a month between mid-June and mid-July, Adhikari said it was an outcome of increased government expenditure and an increased inflow of remittance in the country.

Adhikari also stressed on the need to ensure timely payment of monthly installment against loans by the private sector to correct the ongoing crisis of liquidity shortage. “We are not on the side of imposing excessive regulations in this situation. We expect cooperation instead to solve the present problems,” he said.


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