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Credit culture of Nepal

Wed, Apr 2, 2014

Nation Building

There is no credit card culture in Nepal. It doesnt mean however there is no credit culture in Nepal. In fact it is as bad as the developed world.

Here the credit is between customers and suppliers. The amount in credit is huge. Most of it is expired credit.

From the creditors point of view we could get the size of this credit by summation of all the amount recievables in the balance sheet.

From the debtors point of view we will need to add all the amount payables.

If we added all expired credit it would run into billions.

From grocery shops to multi nationals all have expired credits to raise and debts to pay. It is Just incredible.

In the end such credit will destroy one.

In Nepal with the absence of bankrupcy law the amount of expired payables could reach astronomical heights leaving all creditors penniless.

In Nepal there are a few regulations the cheques that can be blacklisted if not honoured. But it’s not usually practiced.

Just because one gets credit one should not use it because in the end you will have to pay a higher price. It is sure.

Also just to get business one should not give credit.

Credit is a dangerous vice in Nepal. It has to be stopped for the good of all.