Kathmandu, Sept. 4: The government has announced a recovery package for entrepreneurs affected by the devastating Bhotekoshi floods, offering customs duty exemptions, concessional loans and debt restructuring facilities.
The package, endorsed by the Cabinet on Thursday following a proposal from the Ministry of Finance, aims to ease financial pressure on businesses and support their recovery.
Under the new measures, commercial and transport vehicles damaged beyond repair or swept away by the floods will have their registrations cancelled. Entrepreneurs importing replacement vehicles will receive full customs duty exemptions. Similar exemptions will apply to replacement plants, machinery, devices and equipment, provided their value does not exceed that of the damaged assets.
The government has also introduced provisions for goods cleared through Rasuwa Customs that were destroyed before reaching their destination during the August 26 floods. Importers bringing in similar goods within six months will be allowed to adjust duties already paid, preventing them from bearing the same financial burden twice.
Flood-affected borrowers will be eligible for one-year concessional loans, with interest capped at either the bank’s base rate plus 0.5 percentage points or the existing premium rate, whichever is lower. Borrowers may also restructure or reschedule loans once, extending repayment periods for both principal and interest.
For loans linked to goods imported through Rasuwa Customs and subsequently destroyed, banks will consider the nature of the business, extent of damage and insurance claims when rescheduling repayments.
Banks will also be authorized to extend additional financing to help revive industries, sustain businesses and protect jobs. Entrepreneurs whose vehicles, machinery or equipment were damaged will be eligible for concessional loans to purchase replacements.
The government said the monetary relief measures will take effect after Nepal Rastra Bank issues the necessary directives and guidelines to banks and financial institutions.
The August 26 floods caused extensive damage to transport networks, industrial assets and trade flows, leaving businesses across affected areas facing major losses.
People’s News Monitoring Service
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