NRB Preparing To Extend Loan Repayment Period
May 21, 2020 | Investopaper
Nepal Rastra Bank is preparing to extend the loan repayment period for borrowers of banks and financial institutions. As the lockdown is getting longer, the borrower is not able to run his business, so it is planned to being extended.
NRB has said that homework is being done to extend the previous period (until Ashad end) of repaying the principal, interest and installment of the loan. On Chaitra 16, NRB had extended the deadline for repayment of principal, interest and installment of all types of loans within Ashad end. If the debtor pays monthly, he will be given a 10 percent discount on the interest amount. In the meantime, the bank was not allowed to charge any compensation or any kind of fee.
NRB is also compiling data on the corona affected area. A study has been done on the impact of import, export, revenue as well as various sectors including tourism, hotel, airline and industry during this period. At the same time, another study committee has been formed by the central bank on what can be done in the coming days to make banks and financial institutions, industries and other sectors sustainable. Dev Kumar Dhakal, executive director of the Department of Banking and Financial Institutions Regulation, who chaired the committee, said that the impact on the debtors related to overall business and infrastructure would be analyzed.
