Tourism businesses received around 51 percent of refinance loans issued in Q1

Published On: November 12, 2021 07:10 AM NPT By: Republica  | @RepublicaNepal

KATHMANDU, Nov 12: The tourism sector that was among the hardest-hit sectors by the COVID-19 pandemic was the largest recipient of the refinance facility in the first three months of the current fiscal year.

The records of Nepal Rastra Bank (NRB) show that the tourism businesses received refinance loans worth Rs 3.46 billion, 50.93 percent of total loans issued by the banks and financial institutions under the heading. Considering the tourism businesses as one of the highly-affected sectors by the pandemic, the central bank has also been prioritizing the sector for the subsidized loans.

Similarly, the hydropower companies utilized 23.64 percent of refinance worth Rs 1.60 billion. Among the recipients, garment industries took the lowest loan amount totaling Rs 54.70 million.

During mid-July and mid-October this year, NRB provided loans of Rs 1.86 billion to 11 borrowers under a special refinance scheme. Similarly, 44 organizations took borrowing worth Rs 4.93 billion under the heading of general refinance.

In province-wise record, Bagmati Province received the largest of Rs 3.45 billion in refinance loans, which made up 50.78 percent of the total borrowing under refinance, followed by Gandaki Province which received Rs 1.89 billion (27.84 percent).    

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