KATHMANDU: Nepal Rastra Bank (NRB) has amended its unified directive to provide relief measures for industries, businesses, enterprises, and borrowers affected by the Gen-Z protests of September 9.
The revised directive allows loan rescheduling and restructuring, adjustments in vehicle loan-to-value ratios, and concessional loans for directly affected borrowers.
According to NRB, licensed institutions may reschedule or restructure loans, upon request from borrowers and verification of impact, by the end of Poush 2082. Such loans will remain in the same classification category as of Ashad 2082, and loan-loss provisions must be maintained accordingly.
The directive also permits banks to restructure loans of borrowers with forward or backward linkages to affected businesses, provided at least 5 percent of the interest payable is collected.
Additionally, the amendment includes relief for loans affected by disruptions at the Rasuwagadhi and Tatopani customs points due to recent natural disasters.
For businesses resuming operations after the Gen-Z protests, banks must maintain lending rates at their base rate plus a maximum premium of 0.5 percentage points until operations begin. The capital-to-equity ratio requirement of 80:20 for such loans will be relaxed for one year, with classification under micro-surveillance temporarily exempted.
NRB has also raised the loan-to-value ratio for vehicle purchases from 60 percent to 80 percent.
Furthermore, the directive introduces concessional lending for industries that employ at least 100 women, add a minimum of 25 percent value, and export at least 25 percent of their production. For such businesses, banks may charge interest at the base rate plus a premium of 1 percentage point.
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