October 27: Nepal Rastra Bank has so far provided loans worth Rs 1 billion to the tourism and cottage industries affected by the Covid-19 pandemic in order to pay the workers' salary.
The Nepal Rastra Bank confirmed that the business continuity loan has been extended to the COVID-19 affected tourism, cottage, small and medium industries for payment of salaries to workers and employees in line with 'Business Continuity Loan Procedure, 2077'.
Under this provision, Rs 1 billion loan has been approved as of mid-September, the central bank stated in the ‘Current Macroeconomic and Financial Situation of Nepal issued on Monday.
It may be noted that the government has implemented special provisions to provide economic relief to the tourism industry as well as small and medium-scale industries that have been severely affected by the pandemic.
Successive governments had announced special relief for the COVID-19 –affected areas in the budget for the previous fiscal year and the current fiscal year. The central bank has incorporated the special policy provisions in favour of businesses and enterprises in the monetary policy since last year.
Likewise, the size of outstanding amount of refinance provided by NRB in mid-September 2021 is Rs 118.85 billion. As of mid-September, the outstanding concessional loan of Rs 187.16 billion has been extended to 1, 20,715 borrowers of which Rs 121.06 billion has been extended to 51,272 borrowers for selected commercial agriculture and livestock businesses followed by Rs 62.37 billion to 66,690 women entrepreneurs. A total of 2,753 borrowers have been provided with Rs 3.73 billion concessional loan to other sectors, according to the NRB.