Government reduces insurance premium subsidy for its credit programmes
Kathmandu, Oct. 14 -- The government has reduced the subsidy it has been providing for insurance coverage premium for enterprises and insuring credits extended under the government's subsidised loan scheme.
The government provides subsidised loans to different groups and for different kinds of enterprises without collaterals but since there is a chance of default the loans have to be insured.
According to the amended Working Procedure on Interest Subsidy released by the central bank on Tuesday, the government will only provide a 50 percent subsidy in premium to be paid to the insurance company for projects promoted by targeted groups.
Earlier, such a subsidy on insurance coverage was 75 percent of the total premium to be paid. As per t...
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