KATHMANDU, Jan. 13 -- The Confederation of Nepalese Industries (CNI) has welcomed the decision of Nepal Bankers' Association to reduce the interest rate.

Issuing a press statement on Thursday, the NBA said that the move to reduce the loan's interest rate is positive at a time when there is a crisis of capital for investment in the economy, non-performing loans are on the rise and the private sector's confidence is crumbling.

The CNI has also said that the decision to decrease the interest rate is a matter of happiness as the demand is shrinking and plans for new investments are postponed due to higher interest rates.

"The CNI has been calling for slashing the interest rate to boost up the economy and increase the private sector's moral...