Source::RSS
POKHARA
RSS
The Western Regional Hotel Association Pokhara has urged banks and financial institutions not to follow up for the repayment of principal and interest on loans when the tourism sector has been invariably affected due to protracted lockdown against COVID-19.
The association drew attention to the constant follow-up of banks and financial institutions for re-payment of loans in view of closing of the current fiscal year.
A press release issued by the association chair, Bikal Tulachan, stated, "Right now no entrepreneur is in a position to repay bank loans. So, follow-up and undue mental pressure from banks and financial institutions for re-payment of debt in such a critical time would create an unfavourable situation. We also want to inform that banks and financial institutions would be held responsible for any untoward consequences."
The association has further noted that even the government has announced the closure of hotel business so the hotel and tourism sector would not be able to repay loan principal and interest during complete lockdown.
Likewise, the association has also drawn attention towards Nepal Rastra Bank's delay in the enforcement of refinancing guideline. It has also expressed dissatisfaction over the central bank's preparation to enforce refinancing guidelines and monetary policy from Shrawan (mid-July-mid-August) instead of earlier months during such a situation.
The hotel and tourism sector has been completely shut down for over three-and-a-half-months due to the government enforced nationwide lockdown.
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