21st September 2025, Kathmandu
Nepal Rastra Bank (NRB) has initiated a comprehensive damage assessment process to provide financial relief to businesses affected by the recent Gen-Z protests.
NRB Begins Damage Assessment
Nepal Rastra Bank (NRB) has initiated a comprehensive damage assessment process to provide financial relief to businesses affected by the recent Gen-Z protests. The central bank has formed two specialized committees to evaluate the extent of the losses and determine appropriate relief measures.
NRB’s Assessment and Relief Strategy
To ensure a targeted and efficient evaluation, the NRB has established two committees. The first is the Bank and Financial Institution Review Committee, led by Executive Director Guru Paudel. This committee is tasked with collecting detailed reports from banks and financial institutions on the loans and credit exposure of the affected businesses. The second is the Industry and Business Impact Committee, headed by Executive Director Kiran Paudel. This group will gather information directly from the business owners and industries that suffered losses.
The assessment will not involve on-site inspections but will rely on documentation and data provided by the relevant parties. The valuation will consider the physical damage to properties, the status of outstanding loans, and any insurance claims filed. Based on this information, the central bank will formulate specific relief measures, which may include policy adjustments or concessional financing to aid in recovery. This approach is intended to be more focused and to prevent the misuse of funds that occurred in past relief efforts, such as those following the 2015 earthquake.
Widespread Economic Impact
The protests have had a significant and far-reaching impact on Nepal’s economy. Numerous businesses and institutions across the country have reported severe damage from arson and vandalism. This includes:
- Retail: Twenty-one branches of Bhatbhateni Supermarket were affected, causing disruptions to retail operations.
- Hospitality: The Hilton Hotel and the Chaudhary Group factories suffered extensive property destruction.
- Infrastructure: The Chandragiri Cable Car station, a major tourist attraction, was attacked and set ablaze.
- Corporate and Education: The Ncell Central Office, Central Business Park, and Global College were damaged by vandalism and fire.
- Automobile Industry: Major automobile showrooms for brands like Hyundai, Suzuki, and and Tata Motors experienced severe losses.
- Financial Sector: The banking sector was also directly hit, with 68 bank branch offices and 69 ATMs across the country sustaining damage.
This widespread destruction has not only led to immediate financial setbacks but has also shaken both domestic and international investor confidence.
Demands from the Business Community
In response to the crisis, industrialists and entrepreneurs have called for specific support from the NRB and the government. Their primary demands are for loan restructuring to ease the pressure of repayment and the availability of fresh credit facilities to help them rebuild their businesses. These requests highlight the immediate liquidity challenges faced by businesses that must simultaneously recover from losses and continue to provide employment. Governor Dr. Biswo Nath Paudel has held discussions with business leaders and bankers, assuring them that a relief package is forthcoming once the damage assessment is complete.
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