Parliamentary FC directs NRB to take action against willful defaulters

Amid negligence of the willful defaulters to restructure their loan liability in the timeframe set by the government, the parliamentary finance committee has asked the government to immediately take action against such willful defaulters.

The government had set a mid-September deadline for large willful defaulters to restructure their loan liability.



Nepal Rastra Bank (NRB)

In its 11-point directives to the Nepal Rastra Bank, the committee has ordered the central bank to form a high-level probe committee to investigate and punish those officials of state-owned banks responsible for releasing bad debts worth more than Rs 10 million.

The finance committee gave such directive as it was found that the bank officials were also found responsible for releasing bad loans.

The directive stated that such committee should be formed by mid-November and investigation should be finished by the end of the current fiscal year.

The committee, however, has directed the NRB to restructure and waive penal interest for borrowers with loan liability of less than Rs 10 million and if they could not repay the debt due to the conflict of the country.

The committee has also directed the central bank to seriously review the overall outcomes of financial sector reform and performance of the two banks, which were handed over to foreign management.

Likewise, the committee also directed the government to take concrete steps to implement decisions of the debt recovery tribunal and rehabilitate various branches of banks displaced by the conflict.

The committee also directed the government to arrange necessary procedures to allow the Commission for Investigation of Abuse of Authority to probe financial crimes committed by private banks and financial institutions. nepalnews.com pb Oct 16 06