How has Nepal introduced policy arrangement for sectors severely affected by Covid-19 pandemic?

Nepal Rastra Bank has unveiled Monetary Policy 2020/21 announcing relief package in several forms. Some of them are:

  • Extension of loan repayment and grace period:
  1. Sectors affected by Covid-19 shall get grace period extension of one year
  2. Hotels accommodative of tourists, arrangement shall get grace extension of two years
  • Further loans to industries severely affected by the pandemic by 20 percent of working capital maintained in Mid-April
  • Revision of refinancing facility and minimum investment in terms of loan to priority sector
  1. Refinancing facility for export-oriented and sick industries at 3 percent
  2. Refinancing facility for Small and Medium Enterprises (SMEs) at 5 percent
  • Policy requirement for commercial banks to invest 15 percent loan in agriculture sector, 15 percent to Small and Medium Enterprises (SMEs) and 10 percent to hydropower
  • Restriction/ Deduction on BFIs charging various service fee (until Covid-19 crisis)