NRB Circular: Export-Linked Industries Offered Loan Restructuring Amid Crisis

The Nepal Rastra Bank (NRB) has issued a special circular allowing export-oriented industries to restructure or reschedule their loans in light of the severe disruptions caused by the Gen Z Movement, trade blockades, and economic slowdown. This move aims to provide relief to businesses that have suffered directly from the crisis and help them sustain operations while safeguarding jobs.

As per the circular, industries involved in exports that can demonstrate significant impacts on their business due to the ongoing crisis may apply for loan restructuring until Poush 2082. Such restructured loans will maintain the same classification as they stood in Ashadh 2082, meaning borrowers will not face harsher loan-loss provisioning requirements during the restructuring period.

Furthermore, NRB has instructed banks and financial institutions to apply flexibility in repayment schedules, interest concessions, and rescheduling of principal to ensure that export-linked industries, which are vital for Nepal’s foreign exchange earnings, can recover. This measure also highlights NRB’s effort to stabilize employment, foreign reserves, and industrial competitiveness.