KATHMANDU, Oct 12: Hydropower companies that have not constructed transmission lines will not be able to restructure their loans.
The Nepal Rastra Bank has said that if the grace period is extended for companies without transmission lines, loan restructuring or rescheduling will not be permitted.
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The central bank, by amending and adding provisions to Unified Directive 2080 BS, stated, "Even if hydropower projects are completed and production has begun, if they are unable to operate at full capacity due to the absence of a fully constructed transmission line, an extension of the grace period will not be considered as a basis for loan restructuring or rescheduling."
The grace period refers to the time from when the loan disbursement starts until the date when the borrower begins repaying the loan installments. Previously, if the established grace period was extended, it would be considered a basis for loan restructuring or rescheduling, and provisions for loan loss would be maintained accordingly.
