Kathmandu, Jan. 26 -- Commercial banks extended Rs24 billion less in loans during the first half of the current fiscal year compared to the same period last fiscal year, as demand for loans from the private sector went down.

The total loans extended by commercial banks during the first half of this fiscal year was Rs205 billion against Rs229 billion during the same period last fiscal year, according to Nepal Bankers' Association, a grouping of the chief executive officers of commercial banks.

The decline has come at a time when the government's policy has been to make more resources available to the private sector to achieve the targeted growth rate of 8.5 percent.

The monetary policy for the current fiscal year is also aimed at suppor...