44 Banks and Financial Institutions seek NRs. 72 billion refinancing from Nepal Rastra Bank
Kathmandu. Nepal Rastra Bank has received applications from 44 banks and financial institutions for refinancing. The amount for refinancing amounts to NRs. 72 billion.
Due to the COVID-19 pandemic, Nepal Rastra Bank (NRB) has decided to provide loans with a 5% interest rate through its monetary policy. The step was taken to provide relief to the several businesses and industry sectors, that have been affected by the pandemic. The banks and financial sectors who required refinancing were to apply by mid-October. NRB has pledged to provide refinancing to the required banks and financial institutions by mid-December.
NRB has made a fixed procedure for refinancing where industries affected by COVID-19 will be categorized under highly affected, moderately affected, and less affected. Currently, NRB has a fund of NRs. 38 billion. According to the bank’s procedures, they can lend out loans for five times the fund that they have.
According to Maha Prasad Adhikari, the Governor of the Nepal Rastra Bank, they had a discussion with the bankers on Sunday during, wherein he revealed that it would not be a problem even if there is more demand for refinancing.
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