Monetary Policy to Address the Problems in Construction Sector
July 26, 2024 | Investopaper
Nepal Rastra Bank has unveiled its monetary policy for the current fiscal year with a focus on accelerating infrastructure development. The central bank has introduced measures to address the slowdown in the construction sector and facilitate its revival.
Under the new policy, the repayment period for loans extended to construction businesses has been extended until the end of Mangsir 2081. Additionally, until a new system for handling loan information is established, construction businesses will only be blacklisted based on instances of check dishonor.
The policy aims to address the demands of the construction sector by making specific provisions. It includes new regulations on credit rating requirements for banking services and loans used outside regular banking operations. For loans based on collateral claims from construction businesses, the classification and loss management will follow the same rules as other loans, starting from the date the loan is created.
