Governor of Nepal Rastra Bank Maha Prasad Adhikari has said that there is a lack of liquidity as 50 percent of the loans of banks and financial institutions are invested in imports. Speaking at a meeting of the Finance Committee of the Federal Parliament on Thursday, Governor Adhikari said that there was a lack of liquidity in the market as a large portion of the loan was imported.

The trade deficit is increasing due to high imports, he also informed that a policy has been taken to tighten the import of luxury goods. NRB has recently tightened its grip on silver imports.

Similarly, the gap between deposit and credit growth has also affected liquidity, the governor said. “With the increase of Rs 64 billion in deposits, Rs 411 billion has flowed into loans,” he said. Officials said that part of it was spent on this.