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Banks negotiating with loan defaulters

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News item 27-4-2010

Banks have been negotiating with defaulters of huge loans for their repayment with the two sides nearing consensus on a number of major loans.
The Rohit Group that borrowed money from Nepal Bank Limited for Khandsari Sugar Mill has proposed repaying Rs. 287.5 million out of the total Rs. 500 million owed to settle the default case. The principal amounts to around Rs. 23 million.
The group has pledged to repay an amount worth more than the value of the collateral that stands at around Rs. 230 million. The Debt Recovery Tribunal (DRT) had revalued its collateral a few months ago.
"We are not satisfied with the amount offered," said Binod Atreya, CEO of the Nepal Bank." But we have taken the pledge positively."
According to Atreya, the borrower's proposal is being discussed by the Nepal Bank's board. "The board will most probably decide in favour of settling this case," he said. The DRT has also permitted a month's period to settle the issue. "We want that repayment be made through consensus between the lender and the borrower," said an official of the DRT.
Likewise, the consortium of banks led by Rastriya Banijya Bank that made a loan to Maha Laxmi Sugar Mill is also planning to withdraw the case filed at the DRT against the borrower Birendra Kanaudiya as he has started repaying the loan like a normal borrower. His outstanding principal stands at Rs. 33 million. The government has already removed Kanaudiya from the blacklist at the request of the concerned banks after he reached a consensus with the banks to repay the loan. He first made repayment of around Rs. 100 million to get removed from the black list.
The consortium restructured the loans allowing the borrower to pay loans within seven years including both principal and interest. According to Rabindra Shrestha, chief of the loans recovery department at Rastriya Banijya Bank, Kanaudiya paid interest consecutively for two quarters of a year after the restructuring of his loans.........


Read more about banks taking action agains loan defaulters

 

Other banking news and articles:

New Plans Of Tourism Development Bank (14-03-2010)

Sunrise Bank Ltd announces it will issue new shares (09-03-2010)

Siddhartha Bank opens new branch (29-01-2010)

NMB Bank rejects near to 5000 applications for shares of the Sunrise Bank (10-07-2009)

Change in Board of Directors of NMB bank ltd (09-04-2009)

 

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