Nepal Rastra Bank has issued directives to banks and financial institutions to undertake the restructuring and rescheduling of loans in accordance with the provisions outlined in the first quarter review of the current fiscal year’s monetary policy.
The directive is particularly pertinent for creditors facing challenges due to various circumstances. Sectors falling under this purview include agriculture, forestry, fisheries, mining, tobacco processing, non-alcoholic beverage production, non-food products, metal products, machinery, electronic tools and connections, transportation, storage, communication, and wholesale, among others.
Furthermore, banks have been instructed to complete the rescheduling or restructuring of loans, specifically those amounting to up to 50 million Rs, in key sectors such as retail sales, tourism, education, health, construction, and other industries. This directive is expected to be implemented by March, showcasing the central bank’s commitment to supporting vital segments of the economy.
In a bid to provide relief and flexibility, Nepal Rastra Bank has extended the scope of loan restructuring to include those classified in the active category at the close of the current fiscal year. This strategic move reflects the central bank’s proactive approach in addressing economic challenges and fostering resilience.
In summary, the directive from Nepal Rastra Bank underscores a strategic approach to economic recovery, with a focus on targeted loan restructuring in key sectors, providing a lifeline to businesses affected by various challenges.