Kathmandu. Manoj Gyawali, chief executive officer of Nabil Bank, said that the government has not paid the contractors on time, which has created pressure on the banking system. He made the remark while speaking at a discussion on monetary policy at the Finance Committee of the House of Representatives on Sunday.
He said that there is a risk of more bad loans (NPL) in the banking system due to the suspension of contracts or delayed payments. Stating that banks have invested around five trillion rupees in the construction sector, he said that the government should address the works of the contractors.
He urged the government to facilitate payment through monetary policy. He said that debt management would be easier and the pressure on the banking system would be lessened if the government made alternative arrangements like timely payment or contract handing.
Stating that the banks pay around Rs 38 billion in income tax annually, he said that the government’s failure to resolve the problems of the contractors has affected the profit of the banks.
He said that this will also have a direct impact on the revenue collection of the state.
