SMEs demand financial relief measures

Published On: February 13, 2023 01:07 PM NPT By: Republica | @RepublicaNepal

KATHMANDU, Feb 13: The small and medium enterprises (SMEs) have demanded arrangement of financial relief to the entrepreneurs hit hard by the COVID-19 pandemic.

In a joint press conference on Sunday, the Federation of Small and Medium Entrepreneurs Nepal, the umbrella organizations of SMEs, called for arrangement of financial relief to those facing crises due to the effects of the pandemic.

On the occasion, entrepreneur Naresh Katuwal said preparations were underway for nationwide protests for the protection of the country's economy. Claiming that the small and medium entrepreneurs had saved the country's national economy, he asked the government to support small industry for their survival in the troubled times.

Nepal National Federation of Entrepreneurs Chair Kumar Karki said small and medium entrepreneurs had been bearing the brunt of the economic crisis of the country exacerbated by catastrophic incidents, including earthquakes and the coronavirus pandemic.

The entrepreneurs had been compelled to resort to a suicidal path due to wrong policy measures of banks and financial institutions (BFIs).

Senior vice-chair of the Federation of Nepalese National Transport Entrepreneurs Nepal Punya Prasad (Saroj) Sitaula commented that the BFIs were making profit while investors were grappling with crises in the recent situation. The entrepreneurs were experiencing a hard time largely because of tough measures of the banks and financial institutions when the business sector was gradually baling out of the crisis, he added.

Likewise, chairperson of Nepal Federation of Garment and Tailoring Entrepreneurs Ramkrishna Shrestha said the government should work to address the plights of the entrepreneurs.

He accused the banks and financial institutions of unilaterally increasing interest rates when the SMEs were struggling to rise from the present crisis brought about by the coronavirus pandemic.

Also speaking on the occasion, leaders of other business sectors demanded the government come forward with a special policy to safeguard the SMEs that are on the verge of closure due to the pressing policies of the BFIs.