March 30: Nepal Rastra Bank (NRB) has announced a number of measures to provide relief to the sectors affected by coronavirus. The central bank made such announcement on Sunday (March 29) to bail out the sectors reeling under crisis due to the coronavirus pandemic.

The central bank has directed banks and financial institutions to extend the deadline of repayment of all kinds of loans by at least three months.

As per the directive of the NRB, individuals and businesses affected by the impact of COVID-19 can now repay their loan for mid-April by until July without having to pay any interest or fines.

Issuing a circular, the central bank has clearly ordered the BFIs not to charge any kind of interest till mid-July. However, if anyone pays the loan within mid-April, they will get 10 percent discount on the interest.

Acting Governor of Nepal Rastra Bank Chintamani Shivakoti said that the central bank took such measures due to the inconvenience in repayment of loan.

The central bank has also ordered BFIs not to include the loan that they fail to recover within mid-April in the bad loan section.

The central bank's announcement will be applicable for all kinds of loans including home loans, auto loans, educational loans or loans taken by firms and businesses from any BFI. The rule even applies to credit card dues as the banks have been instructed not to fine any borrower for the stipulated time.

Executive Director at the Banks and Financial Institutions Regulatory Department of NRB, Dev Kumar Dhakal, informed New Business Age that the relief package will not affect the country’s economy adversely.

“These measures will make the country’s economy more vibrant. We expect that the package will provide relief to the borrowers,” he said.