Exporters yet to receive cash incentive, refinancing facilities

KATHMANDU, JUNE 17:

Though the government has simplified the refinancing and cash incentive facilities, pashmina exporters have claimed that both the facilities are still not easily accessible.

“Banks are still not showing any interest in allowing us the refinancing facility and pashmina exporters have still not been able to receive the cash incentive facility too,” said president of Nepal Pashmina Industries Association Pushpa Man Shrestha.

“We have a number of member exporters who have been waiting for banks to cooperate with the refinancing facility and to get the cash incentive which has already been approved and recommended by the Department of Industry for the final process,” he said.

“Though the government had fixed a budget of Rs 300 million for the cash incentive facility for exporters, we are still facing a tough time in receiving the approved cash incentive from the central bank,” he said.

According to Nepal Rastra Bank (NRB), exporters are not eligible for another refinancing facility until they clear their previous loan. The loan payback period for an individual exporter and export-oriented industries is different.

The refinance loan for an individual exporter is available with a payback period of six months, whereas for an export-based industry the payback period is six months with an added adjustment of a few more months, if required, which depends on the previous loan settlement.

The central bank has also mentioned that exporters can easily receive the facility as soon as the respective commercial bank forwards the request to NRB.

The cash incentive facility has been simplified with the decision to allow a minimum of one percent and a maximum of two percent cash incentive depending on the value addition of the product. However, pashmina exporters claim that they have failed to receive the facility.

Source: THT