Nepal Rastra Bank (NRB) has permitted microfinance institutions (MFIs) to reschedule and restructure loans of their clients for the next three years.
Revising the Unified Directives on Tuesday, the NRB has asked the MFIs to implement the facilities by mid-December, 2024. The MFIs, however, can provide the facilities to only those borrowers who have failed to pay back the loans due to various financial problems.
“For those loans which are categorized as non-performing, the MFIs must have to maintain the loan loss amount in prescribed limit while rescheduling or restructuring credit taken by their clients,” reads the circular issued by NRB. “The loan loss amount cannot be reconciled until the debtors concerned pay their interest dues continuously for the next one year.”
