Govt to deposit Rs 15.50 billion in ‘Business Continuity Loan Repayment Account’

Published On: December 24, 2020 01:44 PM NPT By: Republica | @RepublicaNepal

KATHMANDU, Dec 24: The government has decided to deposit Rs 15.50 billion in the Business Continuity Loan Repayment Account.

Formed with an objective of creating continuity scopes for businesses affected by COVID-19, the amount secured from different government organizations will be deposited in the account. According to the Ministry of Finance, Rs 5 billion has been secured from Nepal Oil Corporation (NOC), Rs 3 billion from Nepal Rastra Bank (NRB), Rs 2 billion from Citizen Investment Trust and Rs 2 billion from Deposit and Credit Guarantee Fund. Similarly, Rs 1 billion has been secured from Nepal Reinsurance Company Limited, Rs 1 billion from Employees Provident Fund, Rs 1 billion from Government of Nepal and Rs 500 million from Rastriya Beema Sansthan.

Sishir Kumar Dhungana, secretary at the Ministry of Finance and chairman of the Business Continuity Credit Flow board of directors said, “A commitment of Rs 30 billion has been received.” He said that the amount will be deposited in the account as per the need and later the loan will be flowed.

According to the Business Continuity Credit Flow Procedure, 2020 issued by the Ministry of Finance, an account will be opened to pay the wages of workers and employees working in domestic, small and medium enterprises and tourism businesses affected by COVID-19 and to provide business continuity loan amounting Rs 50 billion.

Meanwhile, a meeting of the board of directors of the Business Continuity Credit Flow held at the Ministry of Finance has decided to start the flow of credit this week from the applications received for business continuity loans in banks and financial institutions.

The ministry has stated that the NRB will provide fortnightly details about the amount deposited in the business continuity loan repayment account and its status to the Ministry of Finance.