Vandalism and arson in 52 branches and 73 extension counters, 100 ATMs of banks and financial institutions
About 1 trillion 20 billion loans of banks and financial institutions have been affected by the demonstrations on August 23 and vandalism on August 24. According to the data collected jointly by Nepal Rastra Bank and the umbrella organizations of banks and financial institutions, it has been seen that loans equal to the mentioned amount have been affected. Sources said that more than 95 percent of these are loans from commercial banks.
During the demonstration, 873 debtors' industries, businesses, and establishments were directly affected and it is estimated that 37 billion rupees worth of damage was caused. As the same borrower has taken loans from more than one bank, some of the mentioned number of loans are duplicated. According to sources, the affected borrowers will be around 600 after reducing the number of duplicates. Also, some industrial businesses that have suffered huge losses in the agitation have not taken loans from banks. Even taking a loan is very little. Because of this, experts say that it will be difficult to find out how much damage has been done in the movement only through bank loans.
There are about 19 lakh 70 thousand debtors in Nepal. Based on this, the number of debtors affected by the movement is insignificant. Although there are more than 1.9 million borrowers in Nepal, the number of borrowers who have taken more than 1 crore loans is only 3 percent. The remaining 97 percent of borrowers are small. It is said that the biggest debtors were affected in the agitation, especially because of arson and vandalism in large industries and businesses.
In addition, 52 branches and 73 extension counters, 100 ATMs of banks and financial institutions were vandalized and set on fire. The vandalized branch sustained minor damage. Mainly, the extension counters in the government institute premises have been damaged a lot, in which only the glass of the window has been broken and some have been set on fire. In the
demonstration, it has been found that 51.5 million rupees and 17 thousand 945 grams (about 18 kg) of gold were stolen from the Baneshwar branch of the National Commercial Bank. The branch office of the National Commercial Bank in the Parliament Building premises was vandalized and looted. The bank says that the gold in the loan collateral was stolen.
Rashtra Bank Governor Vishwanath Paudel claimed that although some branches and ATMs of banks and financial institutions were vandalized, there was no major damage in the financial sector. He has been publicly saying that 50 crores and 18 kilos of gold were stolen from the Baneshwar branch of the National Commercial Bank.
According to Pawan Regmi, the information officer of the bank, the gold in the customer's locker is safe. "The gold in the loan collateral has been looted, it has been insured," said Regmi. Restructuring and rescheduling loans to borrowers directly affected by the movement, loans at low interest rates to pay salaries to employees, and 2 percent interest subsidy from the government on such loans has been facilitated by the Rastra Bank. Credit restructuring and rescheduling facilities have been provided to industries, businesses, businesses, establishments and other borrowers directly affected by the abnormal situation created during the demonstration. At the request of the borrower, the National Bank has given the facility to reschedule or restructure the loan subject to the specified conditions after ascertaining the effect.
According to this, such rescheduling or restructuring should be done by the end of December 2082. The National Bank has also asked the banks and financial institutions to classify the rescheduled or restructured loans in the same category as at the end of June 2082 and maintain the loan loss system. Borrowers with forward/backward linkages with the lending institutions directly affected by the unusual circumstances created during the
performance have also got loan rescheduling and restructuring facilities. But they will have to pay 5 percent of the outstanding interest. Industries, businesses, commercial establishments directly affected by the abnormal situation created during the demonstration will get loans at low interest rates to pay salaries to employees. In order to ensure the employment of the employees working in the affected organizations and establishments, the National Bank has instructed the banks and financial institutions to give cheap loans to the employing organizations and establishments.
Industries that provide employment to at least 100 women and export at least 25 percent of total production with at least 25 percent value addition will also get loans at low interest rates. The National Bank has asked banks and financial institutions to maintain the interest rate of loans by adding a maximum of 1 percentage point premium to their base rate for such loans. If you take a loan to replace the vehicle damaged during the demonstration, you will get a loan of up to 80 percent of the value of the vehicle.
"The loan-to-value ratio can be maintained up to 80 percent when loans are provided to replace damaged vehicles and transport vehicles that are being used commercially in industries and commercial establishments directly affected by the movement," the circular said.
At present, when banks and financial institutions provide loans for the purchase of vehicles, there is a provision that they can only give loans up to a maximum of 60 percent of the loan value of the vehicle. Accordingly, it applies to both the purchase of all-purpose electric vehicles and personal other vehicles for private purposes. Now, the National Bank has provided facilities to industrialists, businessmen, establishments, etc., who were damaged in the agitation.
