Nepal Rastra Bank (NRB) is preparing the Monetary Policy for 2020-21 which focuses on bringing down the interest rate on loan and restructure loan procedures.
It has been reported that various measures will be introduced through the Monetary Policy which will bring interest rate on loan to single digit – at around nine percent.
In accordance, the Monetary Policy is expected to restructure both interest on loan throughout the lockdown period and also restructure the loan policy itself.
The Monetary Policy is expected to be officially unveiled within this month.
Businesses hit hard by the COVID-19 pandemic have been expecting some kind of relief through the Monetary Policy with belief that the NRB will address their concerns.
Similarly, the Monetary Policy is also expected introduce a few measures to effectively implement the central bank’s refinancing loan facility.
As declared by the government earlier, NRB is offering Rs 100 billion in refinancing facility to businesses affected by COVID-19 at five percent interest rate to help the business owners sustain and revive after the pandemic.
The business sector has long been demanding that the government, especially NRB, bring down interest rates.
Likewise, businesses have also urged the bank to manage refinancing loan facility for businesses at two percent with maturity period of two years.