Kathmandu. The government has amended the work procedure related to the interest subsidy on concessional loans to make the loan flow, monitoring and grant management more systematic and effective. The Ministry of Finance has approved and implemented the ‘Procedures Related to Interest Grant for Concessional Loans (First Amendment), 2083’.
The revised working procedure has been made public through the ministry’s website. According to the revised working procedure, the process of providing concessional loans, the process of providing interest subsidy, monitoring of loan utilization and reporting system have been made clear and more systematic.
Provision has also been made that the borrowers receiving the grant should utilize the loan as per the specified purpose and the banks and financial institutions should regularly monitor and provide the details to the concerned body. According to the Ministry, the amendment in the work procedure has been made with the objective of preventing the misuse of subsidized loans, maintaining transparency in the distribution of grants and enhancing the effectiveness of the subsidized loans.
Likewise, the bill further clarifies the roles and responsibilities of the banks and financial institutions, the concerned government bodies and the beneficiaries. The amended work procedure also includes the provision of withholding the interest grant or taking necessary action as per the prevailing law if any irregularities are found in the utilization of the loan or against the working procedure.
The revised working procedure is expected to help make the concessional loan programme more effective, targeted and result-oriented. The ministry has also urged all bodies concerned to implement the work procedure.
