NRB Hints at Concessional Refinance for Businesses Hit by Protests

Nepal Rastra Bank (NRB) has indicated that it may offer concessional refinancing and loan restructuring to private sector enterprises suffering heavy losses during the recent Gen Z protest. The unrest, triggered by violent crackdowns, led to widespread arson, looting, and destruction of key commercial infrastructure across the country.

Major damages were reported in and around the Kathmandu Valley. Twenty-one outlets of Bhat-Bhateni supermarket, Hilton Hotel, Ncell’s central office, Global College, and Central Business Park in Thapathali were set on fire, along with showrooms of Hyundai, Suzuki, and Tata Motors. Facilities of Chaudhary Group, the Chandragiri Cable Car station, and numerous private residences and corporate buildings were also affected.

To address the crisis, NRB Governor Dr. Biswo Nath Poudel held separate consultations on Friday with industrialists as well as representatives from banks and financial institutions. Business leaders called for an immediate relief package, while bankers urged temporary regulatory easing to stabilize affected enterprises. “Concessional refinancing and restructuring of existing loans have been proposed,” an NRB official said. “The Governor assured that support will follow a detailed assessment.”

Prominent private-sector figures, including Anjan Shrestha of the Federation of Nepalese Chambers of Commerce and Industry, Kamlesh Agrawal of the Nepal Chamber of Commerce, and Birendra Raj Pandey of the Confederation of Nepalese Industries, presented their concerns directly to the governor. Chamber President Agrawal noted that discussions centered on restoring business confidence through refinancing, loan restructuring, and lenient treatment from lenders.

Governor Poudel also met separately with banking industry leaders, including Santosh Koirala of the Nepal Bankers’ Association, Suyog Shrestha of the Development Bankers Association, and Sunil Pant of the Nepal Financial Institutions Association. They warned that without concessional measures, both businesses and banks would face severe difficulties. According to Pant, the governor has committed to forming a task force to evaluate damages and recommend targeted interventions.

NRB has a precedent of providing such relief. After the 2015 earthquake, the central bank extended concessional loans for reconstruction, and during the COVID-19 pandemic and subsequent economic slowdown it offered loan restructuring and refinancing to help struggling enterprises. This track record has raised expectations for the central bank’s monetary policy to play a pivotal role in economic recovery alongside government budgets.