Kathmandu, Sept. 13 -- Nepal Rastra Bank has allowed microfinance companies to take loans in foreign currency from pension funds, hedge funds and other authorised organisations abroad too in a bid to ease pressure on shrinking foreign currency reserves.

Previously, they were permitted to borrow only from foreign banks. Issuing a circular on Monday, the central bank broadened their credit sources.

Laxmi Prapanna Niroula, spokesperson for Nepal Rastra Bank, said they revised the provision for microfinance companies to bring more foreign currency and improve the liquidity position of banks and financial institutions.

With even commercial banks struggling to obtain foreign currency loans, Nepal Rastra Bank has turned its focus on microfina...