Nepal Rastra Bank has made an effort to address the industries, businesses and borrowers affected by the unusual circumstances during the Gen G movement through the first quarterly review of monetary policy:
1. Loan Facilitation for Affected Industries and Employers:
Industries, businesses, and borrowers disrupted by the Gen G movement have been provided loan facilitation until their operations return to normal. Under the Payroll Protection Scheme, affected employers or institutions may request wage-support loans, for which banks and financial institutions may charge a maximum premium of 0.5 percentage points above the base rate when determining the applicable interest rate.
2. Loan Restructuring and Rescheduling Provisions:
Banks and financial institutions have been permitted to restructure or reschedule loans of borrowers affected by the movement until mid Poush 2082. Additionally, borrowers with forward/backward linkages to the affected institutions may have their outstanding loans restructured or rescheduled at a minimum interest rate of 5.0 percent. Furthermore, for loans taken to replace vehicles and transportation equipment damaged or affected during the movement, a loan-to-value ratio of up to 80 percent has been allowed.
It is expected that this policy measure will offer meaningful relief to entrepreneurs affected by the unusual circumstances.
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