NRB issues circular on loan restructuring and rescheduling

KATHMANDU: Nepal Rastra Bank (NRB) has issued a circular to banks and financial institutions (BFIs) about the arrangements related to loan restructuring and rescheduling which was brought into effect through the third quarterly review of the monetary policy of the current fiscal year 2022/23. Through the quarterly review of the monetary policy, the central bank has enforced the arrangement that the loan mobilised in hotel and restaurant, livestock and loan related to the construction sector and loan up to Rs 50 million mobilised in other sectors can be restructured and rescheduled as of coming June 15. According to the circular issued by the central bank on Wednesday, loan re-scheduling and restructuring can be carried out after the repayment of at least 10% of the outstanding interest amount by analysing the cash flow and income of the industry and business at the request of debtors. Four other conditions have also been stipulated for the implementation of the arrangements. 'The loan classified as active loan up to April 13 can only be re-structured and rescheduled, the central bank circular said. 'Provision of 5% credit loss on the restructured and rescheduled loan has to be made. Such loan can be mobilised in the cluster in which it was classified', the circular added. It may be noted that the NRB had softened some monetary arrangements through quarterly review of the monetary policy. By RSS READ ALSO:

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