Kathmandu, August 31

Nepal Rastra Bank (NRB) today issued a circular allowing domestic hospitals (that are also earning in foreign currencies) to acquire loans from banks and financial institutions in foreign currencies.

The decision of the central bank to this effect has come in the backdrop of hospitals seeking legal provisions that allow them to take loans in foreign currencies to import necessary hospital equipment and software.

However, only those hospitals acquiring licence from the central bank for foreign exchange transaction can obtain loans in foreign currencies from banks and financial institutions, according to the central bank.

Prior to this, banks and financial institutions were allowed to issue loans in foreign currencies to export-oriented manufacturing industries, hydropower sector and other businesses that earn in foreign currencies.