Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: In a bid to support borrowers facing hardships due to a range of natural disasters, Nepal Rastra Bank (NRB) Governor, Maha Prasad Adhikari, has announced the implementation of special arrangements.
The recently released monetary policy for the fiscal year 2023/24 outlines plans to assist troubled borrowers through strategies like loan restructuring and other customized solutions.
Governor Adhikari emphasized that these special measures aim to provide relief to debtors who have been adversely impacted by natural calamities, enabling them to get back on their feet and revive their businesses.
Additionally, NRB officials have vowed to devise specific plans for rehabilitating industries that may have been blacklisted or severely affected by any natural disaster, ensuring their recovery.
While the NRB may not regularly monitor remittances leaving the country, it now intends to closely track these transactions.
To achieve this, the NRB plans to collaborate with other agencies and implement the ‘National Switch’ system, which will facilitate accurate data collection.
Addressing concerns about the misuse of concessional loans, an NRB official stated that an independent study is underway to assess their proper utilization.
The results of this study are expected by mid-August, and appropriate actions will be taken based on its findings. Should any cases of misuse be identified, borrowers will be liable to pay interest on such loans.
Governor Adhikari also shared plans to revise the ‘threshold’ for loans involving share mortgages. The current threshold, set at loans up to Rs 5 million, will be reduced.
For share mortgage loans up to Rs 2.5 million, the risk weight will be set at 100 percent, while amounts above that will carry a higher risk weight of 150 percent. He urged the public not to be uncertain about these share mortgage loans and assured that clear guidelines will be provided.
With these special arrangements and measures, the NRB aims to extend crucial assistance to borrowers affected by natural disasters, fostering economic resilience and stability in the face of challenges.
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