HAN submitted a memorandum to Nepal Rastra Bank demand to extend deadline for interest payment

KATHMANDU, Nov 04: Hotel Association Nepal (HAN) has submitted a memorandum to Nepal Rastra Bank for rescheduling stating that it is unable to pay the interest of the bank immediately. HAN submitted a memorandum on Thursday and said that it has demanded two years' time to pay the bank's loan installments and interest.

Shreejana Rana, president of HAN, said that even though the hotel and tourism industry, which has been devastated by Covid-19, seems to be somewhat comfortable now, it is not in a position to cover the operating expenses.

President Rana said that the number of tourists who came in the number of 1.2 million since 2019 is trying to increase to 6 lakh this year, but half of the capacity of the business is not being operated. President Rana also said that the most complicated problem is the increasing interest rate of the bank and the urgent need to pay interest within the time limit.

The complicated problem for us businessmen is the increasing interest rate of the bank and the intense urge to pay the principal interest within the time limit. As hoteliers across the country are agitating, it is necessary to protect this industry," said President Rana.

The union has demanded to continue some service facilities adopted by the monetary policy during the covid period. According to HAN, the current rising interest rate is unsustainable in a highly sensitive industry like hotels.

During the meeting, Nepal Rastra Bank Governor Maha prasad Adhikari assured businessmen not to panic. He said that the National Bank will address it through monetary policy review and policy management.