Thursday, September 14, 2006

NRB guv condemns SC decision

Nepal Rastra Bank Governor Bijay Nath Bhattarai on Wednesday submitted a statement before the Public Accounts Committee arguing that the SC order removing certain business houses from the bank defaulter blacklist would have a long-term impact on the economy and financial system of the country.

Saying that the 1,470 defaulters had made it to the blacklist long before Loan Information Centre was instituted, Bhattarai stated that the court order would remove the defaulters from the blacklist leaving them free to take further loans.

Chief Executive Officer of Nepal Bank Ltd John Fitzerald stated that the Supreme Court on Mahalaxmi Sugar Mills could be disastrous for the banking sector.

Reacting to the entire controversy, Binod Chaudhary, who owns the mills, said, “ We have never been in such a tangle with the bank before. This appears to be aimed at defiling the image of the Chaudhary Group.

Banks are trying to create controversy after they failed to recover loans. There are 1,400 defaulters.”

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