January 23: The concessional loan scheme introduced by the government to support the self-employment of women, youths and those returning from foreign employment has been focused on the agricultural sector.
According to the data presented by Nepal Rastra Bank (NRB), 96.47 percent of the total concessional loans disbursed by the government till mid-December 2019 were for commercial farming. This amounts to a total of Rs 38 billion.
As per the second amendment to the provision of concessional loans in the Unified Work Procedure, 2076, banks have to disburse a fixed amount of loans for sectors other than agriculture and livestock. That number is fixed at 500 for commercial banks, 200 for development banks and 100 for financial institutions. But the provision has not been implemented.
Chinta Mani Siwakoti, deputy governor of NRB, stated that the banks and financial institutions would be fined if they did not diversify their loans in sectors other than agriculture.