20th Feb 2021, Kathmandu
Nepal Rastra Bank provided additional facilities to the debtors affected by Corona. NRB provided the facility for restructuring and rescheduling of loans. Due to Covid 19, tourism, hotels and other sectors have not been able to return to normalcy. At the request of businessmen, NRB provided a one-time restructuring and rescheduling facility until the next Ashar.
According to the Monetary Policy Review, ‘Banks and Financial Institutions will analyze active class loans in Poush 2076 BS and submit a written action plan to Ashar 2078 BS. Financial institutions will not be allowed to auction and blacklist the collateral of the affected debtor until Ashar 2078.
Similarly, the necessary arrangements will be made to provide access to the special refinancing of hydropower projects with a capacity of less than 10 MW. Under this arrangement, small and micro-hydropower projects will also be encouraged. The monetary policy review states that ‘necessary arrangements will be made to provide access to special refinancing for hydropower projects of less than 10 MW.’
After the monetary policy review, the Corona-affected industrialists will be able to restructure or reschedule their loans by 2078. Previously, NRB had made arrangements for restructuring or rescheduling the work by Push 2018. The loan can now be restructured or rescheduled by paying only 5% of the outstanding amount of interest.
At least 10% of the interest had to be paid earlier. This policy was introduced in view of the problems faced by entrepreneurs who had previously paid 10% interest. Covid-19 has hit businessmen, particularly in the tourism sector.
