Nepal | August 04, 2020

Nepal Rastra Bank pins relief to COVID impact

Slots several sectors into categories most-, moderate- and least-hit by coronavirus crisis

HIMALAYAN NEWS SERVICE
Share Now:

KATHMANDU, JULY 27

Nepal Rastra Bank has put various sectors into three categories on the basis of the level of impact caused by the COVID-19 — highly-affected, semi-affected and least-affected.

Issuing a circular today, the central bank classified crisis-hit sectors into these segments and said that different relief provisions announced through the Monetary Policy for fiscal year 2020-21 would be provided on priority basis.

The NRB has classified tourism industry (hotels, restaurants, trekking/travel agencies, home stay and resorts), aviation and transportation, entertainment hubs, poultry farming, bee-keeping and livestock farming and foreign employment recruiting agencies as sectors highly affected by COVID-19.

It has placed plastic and home appliances manufacturers/traders, educational institutions and child-care centres, beauty parlours and hair salons, consultancy service providers, hospitals and clinics, construction sector, pharmaceutical producers, under-construction hydropower and renewable energy projects as businesses that are semi-affected by COVID-19.

Hydro projects that are already connected to the national electricity grid, e-commerce businesses, essential goods producers, importing trade, petroleum industry, advertising services, internet and telecommunication service providers, liquor and tobacco business and gold and other jewellery business have been classified as sectors least affected by the coronavirus crisis.

According to NRB, different relief packages announced by the government and the central bank will be provided to sectors based on the level of COVID impact. While sectors most affected by the contagion will get loan payment (including instalment and interest payment) period extended by one year, sectors moderately and least affected by COV- ID-19 will get loan payment period extended by nine months and six months, respectively.

In case of tourist standard hotels, the loan repayment period can be extended by two years.

Through the unified directive issued to banks and financial institutions, the central bank has also tightened criteria for issuing personal/individual loans and has made it mandatory for individual borrowers to clearly disclose the purpose of the loan. Amending its Unified Directive-2019, NRB has made disclosure of purpose compulsory on overdraft loans of up to Rs 5 million.

Prior to this, BFIs were allowed to disburse overdraft loans under ‘personal purpose’ heading, within the limit set by NRB.

A version of this article appears in e-paper on July 28, 2020, of The Himalayan Times.

 


Follow The Himalayan Times on Twitter and Facebook

Recommended Stories:

More from The Himalayan Times:

Lamjung district map

Woman missing after being swept away in a Tuin accident in Lamjung

LAMJUNG: A woman has been reported missing in Dordi Rural Municipality-6, Lamjung, after plunging into a river while using Tuin (wire bridge) to cross it. The missing woman has been identified as Phulmaya Gurung, 32, of Simi village in the municipality. According to Inspector Om Prakash Pun a Read More...

Former king Juan Carlos decides to leave Spain amid corruption allegations

Prosecutors looking into bribe allegations Pressure had been building on royals to take action Former king remains "at the disposal" of prosecutors The 82-year-old helped guide Spain back to democracy MADRID: Spain's former king Juan Carlos has decided to leave his country, a drama Read More...

Ruling party co-chairs stick to their guns

Oli to remain PM till general election, co-chair till General Convention: NCP leader Gokul Baskota Kathmandu, August 3 Co-chairs of the ruling Nepal Communist Party (NCP) Pushpa Kamal Dahal and KP Sharma Oli held talks today in an attempt to break the current impasse in the party, but failed to Read More...

Airlines seek permission to resume flights

Airline companies have to resubmit their proposal for slots if flight operations are halted for more than 60 days Kathmandu, August 3 The government's decision to resume domestic and international flights from August 17 has prompted airline companies to start submitting their proposals to the Ci Read More...

Dhading bans sand mining during monsoon

Dhading, August 3 In view of increasing deaths related to river mining, the authority in Dhading decided to impose a complete ban on sand mining from rivers in the district during the monsoon season. There is already a rule that bans mining of river products using heavy equipment during the ra Read More...

File photo of Melamchi Water Supply Project tunnel.

‘Technical error caused Melamchi tunnel accident’

Kathmandu, August 3 A committee formed to investigate Melamchi tunnel incident has concluded that one of the sluice gates on the tunnel of the Melamchi Water Supply Project had broken due to a technical error. A project engineer and a driver had died due to the flood resulting from the breakag Read More...

reproductive health, Minister of State for Health and Population, Padma Kumari Aryal

Work responsibly, Minister Aryal directs employees

Kathmandu, August 3 Minister of Land Management, Cooperatives and Poverty Alleviation Padma Kumari Aryal has directed government employees to work responsibly as the ministry has the responsibility of protecting the property of over 30 million people of the country. She said this at the annual Read More...

PM visits under-construction museum at his private residence

Bhaktapur, August 3 Prime Minister and Co-chair of the ruling Nepal Communist Party (NCP) KP Sharma Oli today visited his private residence at Balkot and met with people from different walks of life. This is the third time the prime minister has visited his private residence after being electe Read More...