BFIs’ follow up for repayment piles pressure on tourism entrepreneurs; NRB directed BFI's to act as per provision set by Monetary Policy

Entrepreneurs have voiced their complaints about pressure being exerted on them by the banks and financial institutions (BFIs) for the repayment of installment and interest against the central bank enforced policy and directives.

Tourism entrepreneurs said this at an interaction organized by the Nepal Association of Tour and Travels Agents (NATTA) Gandaki on the monetary policy issued by the Nepal Rastra Bank. They voiced their complaints that the consistent pressure of BFIs for repayment of loan and interest has put them in trouble. Though the tourism sector has been included in the list of most sensitive areas due to the coronavirus pandemic, the follow-up and pressure for installment have panicked the entrepreneurs, they said.

Listening to the complaints of the entrepreneurs, the director of the NRB Pokhara branch, Iswori Prasad Bhattarai directed the BFI’s to act as per the provisions in the monetary policy of the central bank. “Capable entrepreneurs are requested to repay the loan amount but in case of incapable entrepreneurs the BFIs need not follow up for repayment within the government-stipulated deadline”, he said.

Noting that the BFIs have a staggering investment of Rs 140 billion in the tourism sector, he urged all sides to take responsibility for protecting the sector. There are 726 branches of different banks of ‘A’, ‘B’, and ‘C’ categories in the Gandaki region. Each branch has to provide a subsidized loan to at least five persons. He further said that the most-affected entrepreneurs would be provided with loans if the necessary processes were met.

Chairperson of Nepal Bankers’ Association Gandaki Deependra Sharma urged the entrepreneurs to not get scared from the phone follow-up of the banks. He further said that the telephonic call might also be to collect advice from entrepreneurs to explore possible solutions.

Likewise, the chairperson of Pokhara Tourism Council Chiranjivi Pokharel said that the BFIs would not most probably be spared when the investment in the tourism sector collapsed so entrepreneurs should in no way be terrorized.

NATTA Gandaki State chair Sanjaya Kanta Sigdel said the tourism entrepreneurs have failed to avail of the monetary policy issued by the central banks. Tourism entrepreneur Ganesh Bahadur Bhattarai stressed that the tourism sector should be provided with a loan at par with the interest of the agriculture sector.

According to the tourism entrepreneurs, there is an investment of a total Rs 400 billion in the overall tourism sector of Pokhara. Out of the total investment, BFI’s loan share 75 percent, it is learned. Minister for Culture, Tourism and Civil Aviation Yogesh Kumar Bhattarai has said that the much-awaited Nijgadh International Airport was an unavoidable project of the country as it was linked with the nation’s interest and development.

At a meeting of the International Relations Committee under the House of Representatives held at Singha Durbar on Sunday, Minister Bhattarai expressed his commitment that construction activities of the airport would be accelerated by keeping the unsolved issues aside.

Briefing the Committee members about the current situation and impact of COVID-19 on civil aviation, he expressed the belief that the Nijgadh International Airport project would be advanced with collaboration and cooperation of all concerned. He added that this was an important project linked with national interests.

The Tourism Minister opined that discussions were underway in order to forward the construction works of the airport either on public-private partnership or government to government model. He also hinted at government investment if PPP or G2G model were not applicable.

Trees at 1,900 hectares of areas should be cut down for airport construction and activities are underway to count the trees, he said, adding that the affected communities are being compensated.

Minister Bhattarai further said that the task of physical infrastructure construction at the aviation sector during the coronavirus pandemic is continued and 95 percent progress of Gautam Buddha International Airport has been achieved so far.

Similarly, construction works of Pokhara Regional International Airport have been accelerated to complete it within the deadline, he added.

Responding to a query, he opined that though the Civil Aviation Authority of Nepal (CAAN) provided the responsibility of self-ground handling to Himalaya Airlines as per the Ground Handling Directives-2072. Appropriate decisions would be taken on this issue soon given its sensitivity, Bhattarai pledged.

On the occasion, most of the lawmakers drew the attention to the bodies concerned including the Tourism Ministry and CAAN towards the delay in the construction of Nijgadh Airport.

Committee members Madhav Kumar Nepal, Dr. Bhim Bahadur Rawal, Dr. Deepak Prakash Bhatta, Mohan Baniya, and Shesh Chand Kumari Tara, Pushpa Bhusal, Renuka Gurung, among others expressed their views at the meeting.