Liquidity Crunch Hits Nepalese MFIs
The Kathmandu Post

MFIs in Nepal are now on the receiving end of liquidity crunch. The MFIs that used to get loan from commercial banks at 4% interest rate are now compelled to pay 7%. Subsequently, MFIs may start increasing the interest rate on their lending.

Liquidity crunch in the market and high rates charged by institutional investors have forced the commercial banks to increase interest rates on deposits and lending. If this situation continues, around 1.8 million poor will be directly affected.

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