Amendment of the integrated guidelines of Purbadhar Bikas Bank, relief package for troubled borrowers, what other provisions are there?

Kathmandu : Central Bank has issued the integrated guidelines issued to Purbadhar Bikas Bank. Guru Prasad Paudel, Executive Director of Central Bank, has issued this guide using the authority given by Section 79 of the Insurance Act 2058.

In the case of borrowers who are in trouble due to circumstances the Infrastructure Development Bank will at the request of the borrower provide loans for investments in loan projects related to hotels and restaurants. Construction including loans to industries such as cement, bricks, brick-blocks, pipes and fittings, education, health, physical infrastructure and transportation. Need to analyze the cash flow and income of the business And on the basis of justification at least 10 percent of the interest to be paid can be recovered and subject to the following conditions, the loan can be rescheduled and restructured.

The National Bank has made a provision that such reorganization and/or restructuring should be done by the end of March 2080. By the end of June loans classified as active can be rescheduled or restructured.

A 5 percent loan loss arrangement will have to be maintained in the rescheduled and restructured loans as mention above.In this way, there is a provision to classify the rescheduled and/or restructured loans in the same category in which they are classified.