Ongoing Liquidity Crisis and Nepalese Economy. Reason and Measures
There has been a severe liquidity Crisis witnessed across the country since last couple of months. Many have been claiming that it's due to irresponsible acts of banking sectors, taking almost 30% growth of lending within first 4 months of current fiscal years while growth in deposit is only 19%. In contrast bankers and other some economist saying, this liquidity Crisis is mainly occurred due to delays in governments capital expenditure. There are some voices who are stating current crisis is mainly fueled by NRB's latest monitary policy restricted Banking sector to finance their majority of capital and reserves, Debentures and new provisions that restrict them further invest in the market. What is real status of economy? During first 4 months of ongoing fiscal year, government capital expenditure is only 6% which was around 10% in previous years. Remittance growth is after many years shown downward growth, decreased around 11% as compared with previous year. Export has i