NRB new policy on foreign currency

KATHMANDU, DEC 05: 

Nepal Rastra Bank (NRB) has allowed banks that fulfill capital adequacy ratio provision to provide pre-shipment and post–shipment loans in foreign currency. 

Earlier in August, the central bank had allowed commercial banks and development banks to lend $100,000 or its multiple as pre-shipment and post-shipment loans to export-oriented industries that earn foreign currency.

Now, it has added the clause that banks that maintain capital adequacy ratio of more than 10 per cent for commercial banks and 11 per cent for development banks are eligible to provide the loan. 

“This will ensure that only strong banks will be involved in the lending of foreign currency loans,” said spokesperson for NRB Bhaskar Mani Gyanwali. The central bank had fixed a maximum of 0.25 per cent addition to LIBOR as interest rate for a loan with a tenure of six months, for loans whose principle amount and interest have to be paid in foreign currency.

Source: THT