Nepal, April 10 -- The Nepal Rastra Bank (NRB) has issued a new circular providing significant relief to construction entrepreneurs. Under this new provision, contractors with outstanding payments from public bodies can now restructure or reschedule their loans by paying only 10 percent of the interest due. This facility is valid until the end of Asar 2082 (mid-July 2025), the NRB stated.

This arrangement is targeted at contractors whose projects have either been completed or are ongoing, but whose payments are still pending from public entities. The circular specifies that financial institutions with licenses can restructure or reschedule loans by collecting a minimum of 10 percent of the due interest based on a cash flow analysis condu...