The continuation of coronavirus-driven lockdown, which has brought all activities in the country to a standstill, has hit the nation’s economy quite hard. Industries, businesses and financial institutions, both big and small, have suffered heavy losses, running in tens of millions of rupees while the collection of revenues in the government coffers has plummeted considerably. The losses incurred during the staggering lockdown have threatened the closure of many industries and businesses and crippled sectors related to trade, agriculture, infrastructure, tourism, foreign employment and so on. There is now an outcry that these sectors are in an urgent need of bail-out from the government so that they could bounce back. In case these sectors are left without any considerable assistance, they will die an untimely death due to losses incurred during the lockdown period.
To reciprocate the SOS call from these worst-hit sectors, the nation’s central bank has announced different concessions and facilities to those who have borrowed loans from the banks and other financial institutions. The announcement, made on the occasion of the bank’s 63rd anniversary, must have brought cheers onto the faces of the beleaguered borrowers. To provide succour to them, Nepal Rastra Bank, the central bank, has decided to grant concession in the interest of the payment of loans in the current fiscal year.
Likewise, arrangements would be made to facilitate during later dates. Enough financial resources would be mobilised in order to give vibrancy among the sectors such as infrastructure, small and medium enterprises, agriculture, energy and tourism. These highly affected sectors will have an easy current capital loan facility. The borrowers will have 10 per cent discount on bank loan interests and the paycheck period has been extended to the end of current fiscal year. In the meantime, the central bank has expressed its commitment to maintain economic stability by expanding the economy and reducing the impacts of pandemic on trade, tourism, foreign employment and infrastructure development. The expansion of economy will be conducted to tackle negative impact of pandemic, for which the bank will increase its current Rs. 60 billion of refinancing fund, which would be mobilised in the COVID-19 affected sectors.
The Central Bank, which lords over all commercial banks and all other profit driven financial institutions, has announced all rescue measures at a time when the crucial sectors have been worst affected by the outbreak of pandemic. Concessions on loan interest rates, mobilisation of additional funds, various facilities to the worst hit sectors have apparently been done to rescue to keep the nation’s economy afloat during this grim hour. Despite all this, it is expected that the impact of the pandemic on our economy will linger on for some period to come, which is evident in prediction from the experts that our economy growth will shrink to 4.5 per cent during this fiscal year. All the financial measures adopted by the central banks are necessary for revival of and for offering resilience to the worst-hit sectors that might die their untimely death because of the heavy losses they have suffered due to unexpected shutdown of the economy. It appears the financial succour being offered by the central bank is expected to bring many of the industries and business enterprises to their old self in due course.