Kathmandu April 21 : Small and medium enterprises (SMEs), hit by the prevailing COVID-19 crisis, have urged the government to provide immediate relief package for them.
The Federation of Nepal Cottage and Small Industries (FNCSI) did so in its meeting with Finance Minister Yubaraj Khatiwada in the capital on Monday (April 20).It demanded for facilitating the small entrepreneurs to pay back their loan installments and interest within one year starting from the day the lockdown is lifted.
“Entrepreneurs might need to utilise their current capital to operate industries after the lockdown comes to an end. Realizing this, the government should come up with the provision of subsidized loan,” said Umesh Prasad Singh, acting president of FNCSI. “Through such provision, those entrepreneurs who have not taken loans so far can borrow at least 70 percent of their paid-up capital at a maximum interest rate of two per cent after the lockdown. As far as the interest rate of the existing loans is concerned, it should be reduced by four percentage points, he added.
The federation also asked for either waiving their loan interests of six months or just annulling all the interests charged during the lockdown period for cottage and small industries. According to it, it is mandatory for the government to ask landlords not to collect rent from entrepreneurs and provide discount on customs tax on import of raw materials. It also demanded that the government extend the deadline to renew their industry operation licence for at least the next six months
“Likewise, loans arranged for women entrepreneurs should be provided without any hassle and interest rate for such loans must be waived for six months,” the federation stated.
