Nepal Rastra Bank has called for applications from banks and financial institutions for refinancing of businessmen affected by COVID-19.
The central bank has called for applications for lump sum refinancing; general refinancing and special refinancing are to be provided in one go. NRB has set the last date for submission of applications as of December 5, 2021. Only banks and financial institutions will be able to apply for the most affected and moderately affected loans from coronavirus.
NRB has defined tourism entrepreneurs including hotels, travel agencies, casinos, and homestays in the worst affected areas. Similarly, air and tourist transport, entertainment, party palace, cinema hall, poultry business, handicrafts of readymade garments, school beauty parlor are being set up.
Similarly, in the moderately affected areas, plastics, iron, tires, leather, home appliances, etc. production and sales-related businesses, hospitals, clinics, forest and mineral industries, construction business, pharmaceutical production, hydropower are under construction.
A bank and financial institution will receive a maximum of 25 percent of the total refinancing amount of the institution’s primary capital. Debtors who have availed of loans through more than one bank and financial institution should have applied only through one bank and financial institution.
NRB has stated that the borrowers of micro, home, and small enterprise sectors will be included in the application for refinancing. NRB has stipulated that banks should include at least 5 customers/borrowers from each branch.
