KATHMANDU, May 17: The Nepal Rastra Bank (NRB) has issued a circular to the banks and financial institutions about the arrangements related to loan restructuring and rescheduling which was brought into effect through the third review of the monetary policy of the current fiscal year 2079/80.
Through the quarterly review of the monetary policy, the central bank has enforced the arrangement that the loan mobilized in hotel and restaurant, livestock and loan related to construction sector and loan up to Rs 50 million mobilized in other sectors can be restructured and rescheduled as of coming June 15.
Revised interest rate corridor system introduced
According to the circular the central bank issued on Wednesday, loan rescheduling and restructuring can be carried out after repayment of at least 10 percent of the outstanding interest amount by analyzing the cash flow and income of the industry and business at the request of debtors.
Four other conditions have also been stipulated for the implementation of the arrangements. 'The loan classified as an active loan up to April 13 can only be restructured and rescheduled', the central bank circular said.
'Provision of five percent credit loss on the restructured and rescheduled loan has to be made. Such loans can be mobilized in the cluster in which it was classified', the circular added.
It may be noted that the NRB had softened some monetary arrangements through quarterly review of the monetary policy.
