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My Corona virus economic package.

Moderators: बिमलमान, Dilbert.

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Member
Registered: Oct 2013
Posts: 4795
Govt should identify low risk area and district and open those areas to start economy inside. Govt can also open local area inside cities, ban travel in main street and open inside area.

- Close of districts where immigrants came from India during last 21 days.
- Mask compulsory.
- No entry to outsiders except...
- Open for cargo transportation.
- Take precautions, follow not touching face, eye, nose, mouth. Washing hands.
- Sample testing for corona.
- Complete close down of border except for cargo and build quarantine in both side of the border.


Govt should let as many business as possible by following simple rule of lock down, no in no out. In door living for all staff. All agriculture production and selling, including alcohol should be opened.




Some epicenter in europe, seems, already passed the worst. So has Iran. Looks like, US will be testing 2/3% population withing weeks then US may have control over corona too.




Banks have decreased interest but not enough. But something is better than nothing.

- Should have decreased fd rate for institution to 4% and individual to 7% and bring down base rate to 6/7%.
- Govt should inject 500 billion into bfis at 2% interest to bring down base rate and increase investment into the economy.

Institution FD rate is 7%, not low enough, but lower than before. Institution used to say, when banks are giving them 9-14% interest on FD, why we should invest? Now they will invest in the business as well as share market more.




We have to remember, there is life after corona. If govt, and us dont take economy seriously, death due to famine in communist countries will look like acceptable tragedy.
Member
Registered: Mar 2018
Posts: 591
Think of life rather than economy now.
If you survive the current crisis, money can be earned later. But if you succumb to CORONA, whats the use of money u ve saved ?
Member
Registered: Oct 2013
Posts: 4795
Something is better than nothing. Thanks to corona......

Base rate is about to fall by 1-1.5%. Which is not enough but still it is better.

Base rate is suppose to be 6/7%. But new rate may bring down the rate to 8-8.5%.

Interest rate for business is suppose to be at max 8% and other's below 10%.

Govt can bring down further by injecting 500 billion into banking system at 2%.




Good for the economy- it would help to increase economy by some percent- and share market which is already too low.





Another good news, Governor has been appointed the person whom I was supporting. He was ex NRB plus he was running investment board. . Hope he understands banking and investment, and balance them.
« Last edit by The Rising Sun on Mon Apr 06, 2020 4:42 pm. »
Member
Registered: Oct 2013
Posts: 4795
1: Give 5000-10000Rs/family/month to 1500000 family. (In cities- poor and tenant)

2: Help those in village to sell goods to cities. Those in transportation, retail should be tested for corona regularly.

3: Identify pocket of small habitat which dont have corona and close the area to outsiders (except for cargo transportation- check them for the virus regularly and only limited person from the area should have contact with caution with outsider/transporter) and start economy in those areas.

4: Industries, business which dont need to meet people from outside, quarantine them, no in or out to outsiders then start the industries and business and sells.

5: One month delay for payment of loan/interest/tax to all. And date should start after all lock down has been ended.

6: Three month delay for payment of loan/interest/tax to those who are indirectly affected by the pandemic. And date should start after all lock down has been ended.

7: Rescheduling of loan for 6/12 month to those who are partially affected- industries and business.

8: Rescheduling of loan for 1 year and zero percent interest for one year for those who are directly affected by the disease. And date should start after all lock down has been ended.

9: To bring down interest rate, I would bring down base rate by pumping in 500 billion into banking system at 2% interest. Targeted base rate 6/7%. I believe in one year, base rate could fall to 6/7%. And put govt revenue in BFIs. (current average base rate could be around 9.5%).

10: Due to this crisis, we may have found out the danger of high interest on FD. Now max FD rate, I would fix for institution- 4% and for individual 7%.

11: For competitive economy and Banking system, promote smart bankers.

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Monitory policy should introduce-

1: Three types of income of BFis- main should be non banking (including from treasury bill), secondary from loan- spread rate, and third by saving from operating cost.

2: Banks should be motivated/opened to make money outside interest rate income including treasury bill.

3: Treasury bill- rate should be 2.5 percent. Rate of treasury bill and QE/govt deposit into bfis should be same. Income from non banking should not be tied with spread rate and should not be calculated while calculating spread rate. Income from treasury bill should be tax free. Treasury bill should be utilized maximum to build infrastructure of Nepal.

4: Spread rate- Current spread rate should be 4.5%. 50 year spread rate target should be 2.5%. In every 3 year, spread rate should be reduced by .1%.

5: I believe, current average operating cost is 2.5%. Just like spread rate, operating cost should be fixed. And It should be max 2.5%. 50 year target of operating cost should be 1.75%. I every 4 year, operating cost should be reduced by .05%. If Bfis can reduce operating cost, below 2.5%, they should be let to add it in their profit.







Non banking income and operating cost income would motivate BFIs to promote right management and competitiveness and merger.


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12: To bring down base rate, create liquidity, promote share market, motivate long term investor introduce share deposit in bfi just like gold deposit at 2.5% interest.

13: After this crisis is over, we need to plan to take our economy to 100 kharab within 5/7 year. And I have one, and I believe it can be done since out country is a shithole and shithole can easily multiply economy.

14: Govt should first try to borrow money from domestic market then only foreign market. Treasury should be tax free and should not be calculated while calculating base rate. And interest should be 2%.



We need to test as many as possible for corona, enough sample testing in safe areas(closed area for outsider but opened for business.


Only poor should be given free money in this crisis, not to business. Give cheap or interest free (for certain period) loan to business.
















I have only read headline about govt's economic package. I give it high number.

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