Nepal | January 18, 2021

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:

CM Raut casts doubt over apex court’s role

RAJBIRAJ, JANUARY 16 Province 2 Chief Minister Lalbabu Raut today said though the Supreme Court verdict should be acceptable, circumstances in which the Parliament was dissolved were suspicious. Addressing the 10th General Assembly of Saptari chapter of Federation of Nepali Journalists at Bana Read More...

Home Minister Thapa defends dissolution of Parliament

DHANKUTA, JANUARY 16 Home Minister Ram Bahadur Thapa said that dissolution of the Parliament was an imperative for the sake of political stability. Addressing a district-level meeting of party cadres in Dhankuta today, the Nepal Communist Party (NCP) leader claimed that the prime minster h Read More...

Security tightened at border points in Banke

NEPALGUNJ, JANUARY 16 District Administration Office, Banke, has tightened security to prevent the possible spread of bird flu in Banke. The DAO took the decision after bird flu was found in different states of India. The DAO has banned import of birds and poultry-related items from India. Read More...

Mexico records deadliest coronavirus week yet with 7,000 deaths

MEXICO CITY:  Mexico has registered its worst week yet of the pandemic, with a record number of infections from the new coronavirus and more than 7,000 COVID-19 deaths, government data showed on Saturday. There were 20,523 new coronavirus cases and 1,219 more fatalities on Saturday, push Read More...

Price of precious metals fall

KATHMANDU, JANUARY 16 The price action of precious metals in the trading week of January 10 to 15 suggests investor indecision and impending volatility in the international markets. According to the rate list of the Federation of Nepal Gold and Silver Dealers’ Association (FeNeGoSiDA), gold Read More...

Sherpa, Acharya take lead

KATHMANDU, JANUARY 16 Pemba Sherpa and Sadbhav Acharya took lead after the first day of the Indian Ambassador’s Invitational Golf Tournament here at the Gokarna Golf Club today. Played under stabelford 3/4 handicap format, the seven-handicap amateur golfer Sherpa earned 39 points to stay Read More...

APF register huge victory

KATHMANDU, JANUARY 16 Abinash Bohara took five wickets and Asif Sheikh scored half century as Nepal APF Club thrashed Province-1 by 135 runs in the Group A match of the PM Cup National Men’s Cricket Tournament here at the TU Stadium today. Batting first, APF were all out for 243 runs in Read More...

Tikapur carnage convict says he will revolt for justice

DHANGADI, JANUARY 16 Laxman Tharu, who has been sentenced to life imprisonment for his role in the Tikapur carnage by the High Court, said he would start a revolt for justice. Tharu, who had been underground following the High Court’s verdict, informed about his preparations to take up a Read More...