KATHMANDU: Nepal Rastra Bank (NRB) has extended the deadline for businesses and borrowers affected by floods in the Bhotekoshi and Budhi Gandaki rivers to repay loan principal and interest instalments until the end of Poush (mid-January).
The central bank introduced the provision on Tuesday by amending its Unified Directives, 2082, applicable to licensed Class A, B and C banks and financial institutions.
According to NRB’s Bank and Financial Institution Regulation Department, the relief applies to businesses, projects and enterprises directly affected by floods in the affected areas, as well as businesses importing or exporting raw materials, semi-finished goods or finished products through the Rasuwa customs point.
NRB said the extension was granted because detailed assessments of the impact of floods in Ashadh and Shrawan are still underway. Borrowers facing difficulties in paying principal and interest instalments due by the end of Ashoj 2083 will now have until the end of Poush 2083 to make payments.
To implement the provision, banks and financial institutions must conduct a realistic assessment of borrowers’ sales and income, cash flow, reserves, the impact on imports and exports, and the proper use of loans.
Executive Director Ramu Paudel said the circular was issued under the authority granted by Section 79 of the Nepal Rastra Bank Act, 2058.