Kathmandu, Mar 30 (PTI) For the first time, Nepal’s central bank has allowed other commercial bank in the country to borrow money from foreign banks and financial institutions to finance sectors such as agriculture and infrastructure projects. Also Read - Intel Alert: China Occupying Nepal's Territory at 7 Bordering Districts
Nepal Rastra Bank’s (NRB) board of directors yesterday held a meeting and made a decision to this effect, according to sources at the central bank. Also Read - Kerala's Eco-Friendly 'Neem G' Auto-Rickshaws to Hit Streets of Nepal, Runs at 50 Paise Per Km
This is for the first time that Nepal’s banks are allowed to borrow money from foreign banks. The decision comes in the wake of liquidity crunches facing Nepalese banks. Also Read - Gorkhey: Snuggled Between the Borders of Darjeeling and Sikkim, this Valley is A Must on Every Traveller’s List
According to the new regulation, Nepal’s commercial banks could borrow loans up to 25 per cent of their core capital.
“The banks can borrow loans for the period from one year to five years to finance productive sector such as agriculture, hydropower, tourism, and infrastructure projects,” a senior bank official told PTI.
This is published unedited from the PTI feed.