Nepal | August 05, 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:

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...

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...

‘Harsher punishment against acid attackers’

Kathmandu, August 3 Women and Social Welfare Committee of the House of Representatives has directed the home ministry to make some amendments to the legal arrangement and punishment related to incidents of acid attack, pointing out the need of timely revision. After the discussion held on ‘a Read More...

Flood victims deprived of relief in Kailali

Dhangadi, August 3 Flood victims of Kailali’s southern region have complained that they have not received relief for the past six days. The victims who were displaced and are staying in the open now are making do with noodles, biscuits and water provided by local levels concerned and various Read More...

Status of Province 1 forests improving

The House panel listed positive effects of proper forest management Biratnagar, August 3 The implementation of scientific forest management programme has led to improvement in the status of forests in eastern Nepal. Increase in revenue collection, replacement of timber import, gradual increas Read More...

Citizenship mandatory for swab collection

Rajbiraj, August 3 After the trend of registering false details increased among the COVID-suspects at the time of swab collection, Saptari District Health Office has made it mandatory to produce citizenship certificate or any other ID card for swab collection. Around a dozen people, who had th Read More...

Food distributed to landslide victims

Jajarkot, August 3 Food stuffs were supplied to landslide hit areas in Jajarkot district. Food Management and Trade Company Ltd supplied food stuffs at Barekot Rural Municipality, where 14 people lost their lives and more than 1,200 people were displaced due to landslides on July 9. The com Read More...

UN Secretary-General Antonio Guterres

UN chief warns world facing 'generational catastrophe' on education

UNITED NATIONS: UN Secretary-General Antonio Guterres warned on Tuesday that the world faces a "generational catastrophe" because of school closures amid the coronavirus pandemic and said that getting students safely back to the classroom must be "a top priority." Guterres said that as of mid Read More...