Nepal | June 03, 2020

NRB to bring relief package for businesses next week

Himalayan News Service
Share Now:

Govt plans stimulus package for businesses through budget

Kathmandu, April 27

Nepal Rastra Bank is preparing to bring the second phase of stimulus package next week to provide relief to businesses hit by the coronavirus pandemic.

Deputy Governor Chintamani Siwakoti said the assessment of the impact of coronavirus across different sectors was in the final stage and would be completed in a few days. “Discussion is under way on the nature of relief that the central bank needs to offer to different sectors and the assessment being carried out by NRB is in the final stage,” he said, adding that some relief packages would be announced next week for sectors hit hard by the pandemic.

According to him, the relief this time will be sector-specific and basically be inclined towards further relaxation on repayment of loans for businesses and the public. The central bank introduced a few measures two weeks ago aimed at offering relaxation on repayment of loans for businesses and the public. However, as businesses have been completely shut for more than a month and the lockdown has prolonged, NRB is preparing to introduce the second phase of relief measures.

Addressing the 65th anniversary of NRB yesterday, NRB Governor Maha Prasad Adhikari had disclosed that the central bank would adopt flexible measures in loan and interest payment of the fourth quarter of this fiscal as well. The first relief package of NRB had primarily offered businesses and the public relaxation on repayment of loans that should be cleared within the third quarter. The bank had deferred the collection of monthly or quarterly instalments (that were to be collected by mid-April) from borrowers till mid-July.

The NRB is expected to further defer loan repayment period for businesses from mid-July.

“The tourism sector and small and medium enterprises have been hit really hard by the pandemic. NRB is more serious towards offering relief to such sectors,” added Siwakoti.

According to him, NRB is also discussing with the Ministry of Finance about the nature of relief to be provided to businesses by the central bank.

Meanwhile, the MoF, which was also expected to bring the second phase of stimulus package to revive businesses, is unlikely to do so anytime soon as discussion is under way to address concerns of businesses and the economy through the upcoming budget for fiscal year 2020-21, which is just about a month away.

“As coronavirus has not been contained and we are still unsure how it will evolve, we are facing difficulties in carrying out an assessment on the level of losses faced by businesses due to the pandemic. Thus, the plan is to address all key issues related to businesses and the economy through the budget,” said an official at MoF, seeking anonymity.

The business community has been asking the government to adopt short- and long-term measures to revive businesses and the economy.


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


Follow The Himalayan Times on Twitter and Facebook

Recommended Stories:

More from The Himalayan Times:

Brazil

Brazil sets another record for daily coronavirus deaths

RIO DE JANEIRO: Brazil registered another record number of novel coronavirus deaths over the last 24 hours, the health ministry said on Tuesday evening, as the pandemic in Latin America's largest country shows no signs of slowing down. The nation registered 28,936 additional cases of the nove Read More...

High-level panel to decide on easing lockdown by tomorrow

KATHMANDU, JUNE 2 The High-Level Coordination Committee for the Prevention and Control of COVID-19 formed under Deputy Prime Minister and the Minister of Defence Ishwar Pokharel will decide in a day or two whether or not to ease the lockdown. Member Secretary of the committee Narayan Prasad Bi Read More...

FIFA adds voice to protests over Floyd's death

BERN: World soccer's governing body FIFA has joined sports leagues, teams and players around the globe to express solidarity amid outrage over the death of George Floyd, an unarmed black man killed in police custody in the United States. The National Football League, National Hockey League an Read More...

Nepal's ruling party stresses dialogue with India to resolve territorial dispute 

Kathmandu, June 2  Nepal Communist Party (NCP) lawmaker Narayan Kaji Shrestha urged India to sit for dialogue with Nepal to resolve Limpiyadhura, Lipulekh and Kalapani issues. He welcomed Indian Defence Minister Rajnath Singh's remark about resolving border disputes with Nepal through dia Read More...

Nepali Congress registers statute amendment bill 

Kathmandu, June 2 The main opposition Nepali Congress today registered a private constitution amendment bill at the Parliament Secretariat seeking to change the constitution's provisions related to citizenship, language, provincial boundaries and formation of a boundary commission. Eight Nepal Read More...

Dhangadi  quarantine

Quarantines in Sudurpaschim bursting at seams 

Dhangadhi, June 2  With the increasing number of returnees from India, the quarantine facilities in Sudupaschim Province are almost packed. The number of migrant workers returning home from India is increasing every day. According to Kailali District Administration Office, around 5,000 Read More...

Nine businessmen held for gambling, remanded to custody 

Kathmandu, June 2 Nine businessmen, some of whom are ‘well-known faces’ in the business fraternity, were sent to five-day police custody after being arrested from a gambling den last night. Deputy Superintendent of Police Raj Kumar KC, also the spokesperson for Metropolitan Police Range,  Read More...

PCR tests of all quarantined persons fraught with problems 

Kathmandu, June 2  The Ministry of Health and Population said that implementing the Supreme Court’s order to conduct tests for coronavirus on all quarantined persons across the country using polymerase chain reaction method was a daunting task. Earlier, the Supreme Court had issued an order Read More...