Land developers say they are not to blame for liquidity crunch

Nepal Land and Housing Developers' Association (NLHDA) on Thursday said that they are not to blame for the severe liquidity crunch that has hit the country hard.

Organizing a mass assembly in the capital, NLHDA claimed that corrupted people who hoard the money illegally have caused the liquidity crunch in the country

The land developers said that their business has been hard hit after Nepal Rastra Bank (RNB) imposed a ceiling on the loans given by banks and financial institutions for the purchase of land and houses.

"If the government doesn't take initiatives to make the environment favorable for the land and housing business, we will be forced to invest outside the country," said Ichha Bahadur Tamang, president of NLHDA.

He said that the real estate and housing business has been contributed immensely to help the country's economy grow by providing job opportunities to many people in the country.

The land and housing developers' also complained that banks don't have a fixed interest rate and that it is being regularly increased, causing them problem while paying back the loans they have taken from banks.

They said that the government policy that requires individuals to show their income source while buying property worth more than Rs 5 million is hampering their business and should be abolished. nepalnews.com