Minister for Finance Bishnu Prasad Paudel announced the fund, organizing a press conference on Wednesday.
The cabinet meeting held on Tuesday had decided to establish the fund.
“This fund is an attempt of the government to assure quake-hit sectors and business enterprises that the government is here to assist them,” Paudel said. “The fund will benefit farmers, cottage, small and medium-scale industries, tourism industry, and production-based industries, among others.”
Paudel said the fund will ultimately help national economy by increasing economic activities, generating employment, increasing production, and contributing to tax mobilization. He also informed that the fund will be operated by Nepal Rastra Bank (NRB).
Speaking at the press conference, Finance Secretary Lok Darshan Regmi said that the fund will have interest subsidy and refinancing facility to enterprises affected by the earthquake and the ongoing crisis. He also said business enterprises can get refinancing facility through this fund at interest rate of five percent.
Meanwhile, private sector has welcomed the formation of Economic Rehabilitation Fund.
“We are happy to know that government has established economic rehabilitation fund as per our recommendation,” Bhawani Rana, senior vice president of Federation of Nepalese Chambers of Commerce and Industry (FNCCI), said, adding, “We are hopeful that the government will consult with the private sector while preparing working procedure to operate the fund.” She also urged the government to bring the fund into execution as soon as possible.
Similarly, Hari Bhakta Sharma, vice president of Confederation of Nepalese Industries (CNI) said formation of this fund is a good beginning. “The government should execute it without further delay and simplify the process so that enterprises can have easy access to it,” he added.
Likewise, Rajendra Malla, vice president of Nepal Chamber of Commerce (NCC) urged the government to execute the fund at the earliest.
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