First Business News Portal in English from Nepal
KATHMANDU: The Ministry of Finance has submitted the work procedure of the concessional loan worth Rs 50 billion, which was prepared by Nepal Rastra Bank (NRB), to the Council of Ministers.
The government had brought the concessional loan through the budget of the current fiscal year to provide payments to employees involved in the industrial sector who have been facing problems due to the coronavirus.
The central bank had submitted the work procedure of the fund to the Ministry of Finance a month ago. According to Jhakka Prasad Acharya, joint secretary at the Finance Ministry, the procedure has been forwarded with necessary amendments to the Council of Ministers.
According to him, the ministry will start distributing the concessional loans immediately after the work procedure is approved by the Cabinet.
Although the work procedure for the fund has been finalized, the government has yet to manage the resources. The ministry is ready to start disbursement of the loan by transferring some funds to the central bank immediately. The Finance Ministry has said it will gradually manage the resources.
The loan disbursement process could likely start before Dashain if the work procedure is approved by the Cabinet soon, informed Acharya.
According to the procedure, industrialists will be allowed to utilize this loan only to make salary payments to their workers. NRB will hand over the funds to various commercial banks for distribution.
To avail the loan which will be provided at five percent interest rate, the industrialists will have to submit an application to the bank disclosing the number of employees in their company and the required amount.
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