FNCCI Kathmandu Urges Government to Extend Loan Facility by Two Months

Kathmandu, October 14 — The Federation of Nepalese Chambers of Commerce and Industry (FNCCI) Kathmandu has urged the government to extend the loan repayment facility by two months, citing the current economic and social challenges in the country. In a press release issued by FNCCI Kathmandu President Dinesh Shrestha, the federation stated that entrepreneurs and business owners have been severely affected by recent social movements and natural disasters, calling for immediate relief through an extension of loan repayment deadlines until the end of Mangsir (mid-December).

According to the statement, the current unstable economic environment has led to reduced cash flow in the market, a decline in debt recovery, and a negative impact on investor and consumer confidence — all of which have discouraged entrepreneurs and businesses.

The statement further mentioned that this year’s festivals have arrived earlier than usual, forcing businesses to manage two months’ worth of salaries, festival expenses, bank interest and principal payments, working capital installments, and taxes within Asoj (mid-October). These obligations have created immense financial pressure on the business community. Therefore, the federation has requested that, for regular clients up to the end of the last fiscal year (Asar), the government allow repayment within two months (by the end of Mangsir) or provide an equivalent additional credit facility to reconcile the accounts.

The FNCCI stated, “If these demands are addressed, the affected entrepreneurs, business owners, and all debt-paying sectors will receive immediate relief, contributing positively to overall economic stability.”

FNCCI Kathmandu has also reminded that during previous economic downturns, it had continuously recommended the government and Nepal Rastra Bank to adopt more flexible credit policies to protect and sustain business operations.