Coronavirus: "Five key points of financial relief announced by the government"-Only Online Khabar

Due to the tragic conditions of coronavirus infection around the world, the economy is stagnant amid tight restrictions.

Government of each country is announcing financial package after another.

India, and European countries have also announced the package.

Meanwhile, the cabinet meeting of the Government of Nepal, held on Sunday evening, announced various relief and concessions in various topics.

Earlier, the Central Bank, Nepal Rastra Bank, had issued a 19-point directive that would be applicable to banks and financial institutions.

Below are the main five points in the announcement and instructions.

1. Facilitate salaried/wage workers

The Cabinet meeting has decided to facilitate them, in the midst of the reports that the food category is becoming increasingly difficult due to 'lockdown' with strict restrictions.

Dr. Yuvraj Khatiwada

The government has asked the local level to keep a record of the daily wage or laborer class belonging to any organized office or factory known as the unorganized sector. According to the government spokesperson and

Finance Minister Dr. Yuvraj Khatiwada, it has been decided that such families should be introduced at the local level for relief and the local level should provide relief during the lockdown period considering the daily food needs of such families.


To provide such relief, the local level and the state should set up a fund and the central government will provide if the funds are insufficient.

"The government has also decided to provide special care for pregnant women, people with disabilities, parents who have lost their parents," Minister Khatiwada said.

In addition, the government has decided that the employer should pay the wages in favor of workers working in a certain office or factory called formal sector, and that the closed companies should also reimburse their salary and utilize the welfare fund of the establishments if necessary.

"The government has decided to deposit the amount of contribution to social security fund in the month of Chaitra on behalf of the employers and workers of such establishments affiliated to Social Security Fund," he said.

2. Exemption/discount in grocery products, agility of supply system

It has been decided by the Food Law and Trade Company and the Salt Trading Corporation to sell and distribute 10 per cent discount on current prices of food items including cinnamon, flour, salt, sugar, edible oils.

In the case of lockdown, it has been decided to restrict the transport of goods across international borders, but not in favor of transport of goods.

3. Concession on debt interest

Nepal Rastra Bank on Sunday issued a 19-point directive, announcing various concessions to banks and financial institutions as well as concessions to borrowers.

The limit of mandatory cash reserves provided to banks has been reduced and bank rates and refinancing funds have been adjusted.

"It will help to lend to banks. We expect it to be of benefit to all," Chintamani Shivakotti, acting governor of Rastra Bank, told BBC News Nepali.

In addition, Rastra Bank has asked all banks and financial institutions to make arrangements for payment of monthly / quarterly installments (including credit cards) that had due in the month of Chaitra, by the Asar month of 2077B.S.

They do not claim any additional charges or damages in respect of those installments.

If a borrower comes to submit such installment within Chaitra month, he is also asked to give a 10 percent discount on the interest amount to be paid in the month of Chaitra.

Rastra Bank has also given various directions to encourage electronic business.

4. Revenue exemption, time concession

The government has also announced a concession on time and payment of tariffs on various services.

The cabinet has decided that the telecommunication company will give 25 percent discount on internet and data package during lockdown and private company will also arrange for such exemption.

The Electricity Authority has said that it will give a 25 percent discount on the tariff of domestic consumers who consume electricity up to 150 units per month.

It is said that no penalty will be imposed if electricity, drinking water and telephone tariffs of Falgun/Chaitra month are submitted by late Baishakh month.

In addition to the various tax filing deadline, the renewal of driver's license and vehicle renewal tax filing period has also been extended till Baishakh/April.

5. School fees, home rentals

The government has decided that private schools will arrange for exemption of all types of fees other than housing fees up to one month up to secondary level.

The unemployed area workers in urban areas will not have to pay a month's worth of rent payments to the householder.

Info Source: BBC News Nepali