Kathmandu. Nepal Rastra Bank (NRB) Governor Prof Dr Bishwo Poudel has not made the expected progress in the implementation of some important programmes related to agricultural credit which were included with high priority in the monetary policy of the current fiscal year 2082/83. According to the annual review of the Monetary Policy for the current fiscal year released by the Nepal Rastra Bank, the implementation of the loan facilitation programme aimed at easing credit for agriculture business has not progressed.

The Monetary Policy has further simplified the provision for banks and financial institutions to issue loans of different periods and types of loans to individuals and business firms for activities related to foodstuffs, crops, livestock, fisheries and other agricultural businesses, according to the nature of crops and production, and its effective monitoring. However, according to the annual review, no progress has been made in the implementation of this program.

Likewise, an arrangement has been made to facilitate the loan to be issued with the objective of increasing the production of agricultural products recommended by NARC. For this, the Nepal Rastra Bank has already issued a unified directive.

Likewise, the NRB has also issued directives for the promotion of industries and businesses along the Postal Highway and the Mid-Hill Highway. According to the review, through the directive issued on August 22, 2082, the Department of Food Technology and Quality Control has made arrangements to count loans up to Rs 30 million to hotels and restaurants with food hygiene standardization logo and industries along the highway as small and medium enterprises (SME) loans.

Similarly, the central bank has also made a provision to disburse loans by adding a premium of up to 2 percentage points in the base rate.

Likewise, the NRB has already issued a directive on October 14, 2002 for the re-scheduling and restructuring of the loans taken by the people living in the earthquake-affected areas of Jajarkot and Rukum, according to the review report. As per the new provision, the banks and financial institutions can reschedule or restructure the loan on the basis of necessity and justification after recovery of at least 10 percent of the interest to be paid by analyzing the borrower’s cash flow and income.