Meeting representatives of Nepal Bankers Association (NBA), Development Bankers Association Nepal (DBAN) and Nepal Financial Institutions Association (NFIA) after listening to grievances of the private sector, NRB Governor Chiranjibi Nepal urged them to come up with suggestions to the central bank on possible relaxations to industries and firms hit by the Tarai unrest and subsequent 'undeclared' economic blockade imposed by India.The central bank took the initiative to offer relaxation to industries and business firms after officials of Federation of Nepalese Chambers of Commerce (FNCCI), Confederation of Nepalese Industries (CNI) and Nepal Chamber of Commerce (NCC) met the central bank officials last week to apprise them of the difficulty that industries and firms were facing in making repayment of loans due to banda and economic blockade.
Among others, they have demanded extension of loan repayment deadline of first quarter to the second quarter. "
"Private sector representatives have been saying that they are unable to repay loans as their firms and industries have remained closed for the past two months. They have been asking us for deferment, rescheduling or restructuring of loans considering this special circumstanc"s," a senior official of NRB, who was present at the meeting, told Republica."
"We have initiated discussion with bankers about the possibility of such relaxation. We are positive on extending the repayment deadline by one or two months. However, we will take decision after getting feedback and suggestions from the banke"s," the official added.
Krishna Raj Lamichhane, president of DBAN, told Republica that the central bank invited them to seek their advice on demands placed by the private sector representative". "We told the central bank that such relaxation could be possible. However, we also told them that such relaxation should be for specific industries or borrowers who are the real sufferer of recent turmoil rather than offering such facility en mas"e," he added.
Earlier after the devastating earthquake, the central bank had provided some relaxations, like rescheduling and restructuring of the loans, for businesses hit by the earthquake. Many business firms and industries hit by the earthquake got repayment extension to the first quarter of the current fiscal year 2015/16 for installments which they were supposed to pay in the last quarter of 2014/15.
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