Refinance loans of Rs 8.99 billion given to pandemic-hit businesses during mid-July and mid-November

Published On: December 9, 2021 06:30 PM NPT By: Republica  | @RepublicaNepal

KATHMANDU, Dec 9: A total of 72 firms received refinance loans worth Rs 8.99 billion in the first four months of the current fiscal year. Of the total beneficiaries, more than 55 percent are tourism-related businesses.

The records with Nepal Rastra Bank (NRB) show that the eight banks and financial institutions (BFIs) issued loans worth Rs 1.86 billion under the special refinance facility while 25 BFIs provided loans worth Rs 7.13 billion under the general type of refinance scheme. Most of the recipients of the loans under the category are COVID-19 impacted businesses related to hotel, hydropower, academic institutions, carpet factories and dairies.

In the review period, the tourism businesses received Rs 4.95 billion, which covered more than half of the issued refinance loans. Considering the tourism businesses as one of the highly-affected sectors by the pandemic, the central bank has also been prioritizing the sector for subsidized loans.

Manufacturing companies received Rs 1.83 billion (20.43 percent) and hydropower companies got Rs 1.46 billion (16.23 percent). Transport, education and hospital sectors each got around two percent of the total amount and the garment factories were issued with 0.61 percent of the total refinance loans.

In the province-wise recipients, businesses in Bagmati Province got the largest of Rs 4.22 billion (46.94 percent), Province 2 got only 5.48 percent while those from Karnali Province and Sudurpaschim Province were not in the lists, according to NRB. 


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