Jan 11: Minister for Finance Janardan Sharma has claimed the current problem of liquidity shortage will be resolved in one month.
Addressing the inaugural ceremony of Confederation of Banks and Financial Institutions, Nepal (CBFIN) on Monday, he said that the liquidity pressure that the banking industry is currently facing will ease within Magh (by mid February).
"There is definitely some pressures in the economy. But, it's not a crisis as has been portrayed outside," said Finance Minister Sharma. "We have taken steps to resolve the liquidity shortage within Magh [mid February," he said.
According to Finance Minister Sharma, the liquidity pressure was a result of disbursements of bank loans to businesses that have been halted for two years due to Covid-19.
He also urged bank and financial institutions to not raise interest rates on loans to businesses for a certain period.
Finance Minister Sharma was of the view that the country should not go for another lockdown.
His remark against the lockdown comes amid concerns from the private sector about possible containment measures including the lockdown amid a spike in Covid-19 cases due to outbreak of new variant Omicron.
"There are concerns that whether there would be another lockdown. We should not take that path. The economy cannot afford another lockdown," he said.