KATHMANDU, March 18: Nepal Rastra Bank (NRB), the country’s central bank, released a total of Rs 82.29 billion under refinance schemes in the first seven months of the current fiscal year.
The NRB records show that the central bank issued an additional refinance loan of Rs 12.33 billion just in a month’s period of mid-January and mid-February. The refinance schemes are aimed at supporting the business enterprises that suffered due to the adverse impacts of the lockdown and the coronavirus.
NRB issues refinance loans of Rs 123.14 billion in nine months...
The monetary policy has earmarked around Rs 150 billion for refinance to the coronavirus-affected firms via banks and financial institutions (BFIs). Under refinancing loans, NRB has let the BFIs issue personal loans and business loans of up to Rs 50 million at a low interest rate of up to five percent.
With strict provisions in place, the central bank, however, received very few responses from the concerned firms as of December end. After revising related guidelines in January, the central bank has been receiving an increasing number of applications. There are additional demands for Rs 45.25 billion from 37 BFIs, which are under assessment process for receiving the final approval, said NRB officials.
In addition, the BFIs provided subsidized loans worth Rs 112.03 billion to 68,206 borrowers during the review period. Of the amount, Rs 82.18 billion was provided to agriculture and livestock related businesses.
During the month-long period from mid-January to mid-February, 7,600 individuals benefited from the loans in this category, according to NRB.
