Loan payment

NRB authorizes rescheduling of loan payment period – The Himalayan Times – Nepal’s No.1 English Daily Newspaper

KATMANDU, FEBRUARY 14

Given the impact of the coronavirus pandemic, Nepal Rastra Bank (NRB) today announced that the repayment period for loans taken out by affected businesses may be rescheduled.

During the monetary policy review for the current fiscal year 2020-21, NRB Governor Maha Prasad Adhikari announced such a concession for businesses.

According to the new agreement reached by the central bank, loans can be rescheduled by paying five percent of the unpaid interest by mid-July of this year.

Previously, the NRB had made an agreement to reschedule loan repayments for debtors who had been good borrowers by paying 10% of unpaid interest until mid-January 2021.

NRB has extended the loan rescheduling period by six months. For the process, the NRB has asked banks to allow the interest rate to drop to five percent until mid-July, especially as entrepreneurs in the tourism sector have not been able to pay even 10 percent of the overdue interest. “We have tried to facilitate the banks and the industrialists,” said the governor.

According to the governor, if a borrower submits a written action plan by mid-July, banks and financial institutions can analyze it and arrange to restructure and reschedule the loan by collecting at least five percent of the loan. unpaid interest.

Likewise, electronic payment transactions will be encouraged, Governor Adhikari said. Monetary policy has been revised to take strict action against banks that do not invest in specified areas.

The existing provisions, including the mandatory cash ratio, the statutory liquidity ratio have been kept, while the loan appraisal ratio has also been kept intact. However, as economic activities return to normal, these policies will be reviewed, the governor said.

The monetary policy review also indicates that concessional loans to hydropower projects with a capacity of less than 10 MW will be a priority.

Meanwhile, the report said consumer price inflation remained within the government’s target. The foreign trade deficit also improved and remittances increased by 11%, the governor said. He said the current account is in deficit but the balance of payments is in surplus and foreign exchange reserves are in good condition.

Stating that deposit mobilization has increased encouragingly and the flow of credit is also good, the governor said those affected by COVID-ID appear to be making good use of concessional loans.

He added that interest rates have gradually fallen and financial access has also improved. The governor said branches of commercial banks will soon reach the remaining four local levels as well.

A version of this article appears in the February 15, 2021 print of The Himalayan Times.


Source link