The Western Regional Hotel Association Pokhara has urged banks and financial institutions not to follow up for the repayment of principal and interest of the loan when the tourism sector has been invariably affected due to protracted lockdown against COVID-19.
The Association came up with the request drawing attention to the follow-up of banks and financial institutions to the tourism and hotel sector for the re-payment of loans in view of the closing of the current fiscal year.
At a press release issued by the Association chair Bikal Tulachan, it is stated, “Right now no entrepreneur is in a position to repay banks loan. So, follow-up and undue mental pressure from banks and financial institutions for re-payment of debt in such critical time would create an unfavorable situation. We also inform that the banks and financial institutions would be held responsible for any untoward consequences”.
The Association has further noted t even the government has announced the closure of hotel business so that the hotel and tourism sector would not be able to repay loan principal and interest amidst the complete lockdown.
Likewise, the Association has also drawn its attention towards Nepal Rastra Bank’s delay in the enforcement of refinancing guidelines. 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 the earlier months during such a situation.
The hotel and tourism sector has been completely shut down for over three-and-a-half-month with the government enforcement of nationwide lockdown.