AIC included in borrower exception list

KATHMANDU, NOV 30: 

The single obligor limit will not be applicable for loans provided by commercial banks to Agriculture Inputs Company (AIC) to purchase chemical fertilisers.

Issuing a circular today, Nepal Rastra Bank (NRB) has included Agriculture Inputs Company on list of its exception of single borrower limit of 30 per cent of the bank’s capital. Earlier, Nepal Oil Corporation (NOC) and Nepal Food Corporation (NFC) were in the list. 

NRB had earlier only mentioned the names of these public enterprises. However, now it has also spelt out the type of loans that fall in the exception category.

The loan obtained by Agriculture Inputs Company Ltd for purchasing fertilisers, NOC for purchasing fuel and petroleum products, and NFC for purchasing food and cereals fall under the exception category.

This year, during the plantation season, the delay by the government in purchasing fertilisers had left many arable lands untilled which will affect national food production. Banks cannot provide loans amounting to more than 30 per cent of its total capital for productive and export industries.

Source: THT