NRB guv says strictness must be on Real Estate

While bankers are asking the government to relax provisions on realty sector lending, Nepal Rastra Bank Governor Yubraj Khatiwada is asking stakeholders to ponder why the central bank was forced to intervene in realty sector lending. “I feel they are still not introspecting,” said Khatiwada.  He was of the view that central bank took the right decision at the right time.

The governor said that developers have been constructing houses and apartments that are beyond the reach of common people. “The per capita income of Nepalis is not even $ 500,” he said. “How can houses or apartments worth millions be sold in this situation?” According to Khatiwada, if developers start constructing houses or apartments that the common people can afford, the government would also think of providing incentives. he said that the central bank could then rethink think the issue of loan restructuring while reviewing the monetary policy.

source:ekantipur

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