Nepal has recently announced its monetary policy for the year 2020/2021. The Governor of Rastriya Banijya Bank, Maha Prasad Adhikari announced several key points in regards to the effects caused by covid-19 and help businesses get back to their own feet. One of the main objectives of this year’s monetary policy is 3R- Reduce, Refinance and Restructure of loans. The overall aim of this policy to revive the economy of the nation from the covid-19 pandemic.
The tourism industry has been categorized as one of the worst hit business sector due to covid-19 pandemic. Basically the service industry like tourism, aviation, hotels and other middle scale industries are badly hit by the pandemic. These sectors has been set as the severely affected industries by the pandemic. The provisions had been made for these badly affected sectors where they get 5 percent loan for reviving the industry and to pay the staff salary. As per the policy, the badly affected sectors can get refinance up to five times.
One of the key parts of this monetary policy is the extension of deadline for the payment of loans. This is a major relief for the tourism entrepreneurs and other service sectors. They have been demanding it for months now. The loan instalment period has been extended by 3 months,6 months and 12 months. The extension period depends on the degree of impact caused by the pandemic. Now the sector who were supposed the pay the loan by mid July has finally got relief as the time period for the payment of loan has been extended. The tourism industry is likely to get the extension of grace period for 1 year.
Furthermore, there was also an announcement of covid-19 recovery plan. The tourism and service industry which are severely affected by the pandemic are likely to get these facilities.
0 Comments