The housing companies and the developers have jointly condemned the decision of Nepal Rastra Bank (NRB) regarding the increase in the loan rate by banks and financial institutions in a monopolistic way.

Issuing a press statement on Friday, members of Nepal Land and Housing Developers Association

(NLDHA) stated that the cost of fund of the banks and financial institutions is only 1.5-7 per cent, but the loan rate of about 15-16 per cent has been charged to the developers, which is 9 per cent more than the required rate.

The housing companies and the developers today jointly presented their 25point demands and said that the government does not have moral rights to call the real estate sector a nonproductive sector. The pres

ident of NLHDA, Ichha Raj Tamang said, “The belief of bureaucrats who dub the realtors and the developers as land-mafia has to be immediately abandoned.” He urged the financial and banking sectors to stop fishing in the muddy water and said time is ripe for the government to become responsible towards private sector.

“The decision of NRB to show the details of the resources for the amount of Rs 1 million or more de

posited in the bank would discourage the investors in this sector and also this would lead towards the liquidity crunch,” said, Tamang, adding that onethird of the economy has been covered by this sector.

Tamang has urged the government to abandon their negative attitude and concepts about the sector and consider it as service sector.

“Housing developers would revolt against this unfair decision as it is monopoly of the government,”said, Ichha Raj Wagle second vice-president of NLDHA. He further added that the banks and financial institutions have been surviving oblivious of the consequences they are likely to face in this regard in the long run.

Tamang strongly stressed: “If the government would bring proper land use policies then the ran

dom development activities would be controlled,” said Tamang, adding that misuse of agricultural land by the real estate sector was a serious accusation.

The housing companies and the developers have also accused the Nepal Bankers Association of not being able to support the developers during the hour of need.

FNCCI vice-president Pradeep Jung Pandey said,”The government has underestimated the private sector and has not been able to co-operate in the development activities initiated by this sector.” He added that the association would support the developers in this context.

NCC president Surendra Bir Malakar also supported the developers’ contention with the exception of providing 50 per cent discount to female while passing the land.

courtesy: The Himalayan Times