The National Nepal Bank (NRB) has extended the deadline for banks and financial institutions (BFIs) to resume tourism operations affected by the COVID-19 pandemic.
The country’s central bank issued a monetary policy for fiscal year 2021/22 that includes a provision that BFIs will assess loans in the tourism, film, party, public transport and education sectors most affected by COVID- 19 and postpone them until mid-January next year.
Rural Bank of Nepal Governor Mahaprasad Adhikari unveiled the policy for the current new fiscal year on Friday, which provides for continued recovery loans to businesses devastated by COVID-19.
Interest on loans received by the most affected sectors will be accounted for separately until the end of the next fiscal year, particularly in the hotel, tourism and trekking sectors and, due to the severe decline in international travel, the aviation sector.
In addition, additional penalties for loans received in these sectors will be waived. Entrepreneurs will repay the loans in four installments, as the repayment of interest and principal has been extended by another year.