Kathmandu. The Office of the Auditor General has pointed fingers at the rationale of the loan program for the misuse of refinance and concessional loans disbursed through banks and financial institutions.
According to the 62nd annual report of the Auditor General, there have been problems such as lack of adequate study, analysis and review of past programs before announcing the program, frequent amendments to the procedures have affected the stability, there is a need to improve the target class identification and interest subsidy distribution process, and financial institutions have not been encouraged to invest on priority.
The Auditor General has suggested the Nepal Rastra Bank (NRB) to further improve the effectiveness and transparency of the concessional loan program, saying that the investigation report through the report has also confirmed the misuse of loans. “There should be an analysis on the continuation of the concessional interest subvention programme in the long run,” the Auditor General said. ’
Loan money abuse
A study conducted by the Rastra Bank through a consultant on concessional loans had found gross misuse of the loan facility. Out of the total 172,654 borrowers, 18.34 per cent i.e. 31,674 borrowers’ files and 1,838 projects were inspected on-site during the preparation of the report.
Of the loans assessed in the study report, 7 per cent of borrowers have rs. 6.35 billion 60 million loans have not been utilized, 12 percent of the borrowers have rs. It was found that the target category was not identified in the loan file of Rs 18.74 billion. Similarly, 6 percent of the borrowers will get Rs. 10.49 billion 10 lakh has used dual loan facility and 11 percent of the borrowers have rs. There was a basis to suspect misuse in the loan of Rs 21.25 billion.
During the study, commercial agriculture and livestock loans amounted to Rs. Samples of 10,981 borrowers with loans of Rs 5.34 billion were tested.
Rs. Rs. 187 billion in loans. 25 billion interest subsidy
According to the RASTRA Bank, according to the Integrated Working Procedure on Interest Subsidy for Providing Interest Subsidy for Concessional Loans, 2075 BS, banks and financial institutions will provide Rs. Rs 187.70 billion concessional loans have been provided at the rate of 5 percent this year. Rs 2.5 billion including Rs 2.5 billion by mid-July 2081. An interest subvention of Rs 24.89 billion has been provided.
The outstanding amount of concessional loan was Rs. 10,000 by mid-July 2081. It has reached Rs 126.82 billion. The banks have not yet decided on the details of the expenses including concessional loans, interest subsidy provided for them. The loan recovery should also be made effective by preparing the mentioned details.
Out of the concessional loans disbursed, 41,689 borrowers from ‘A’ category banks have received Rs. Rs 77.53 billion, 4,200 borrowers from ‘B’ category banks. Rs 8.04 billion, 445 borrowers from ‘C’ category financial institutions. 1.29 billion and 22 borrowers from ‘D’ category financial institutions. A loan of Rs 14.3million has been invested.
Opaque interest subsidy expenses
The Ministry of Finance for interest subvention on concessional loans in the last fiscal year 2080. A total of Rs. 81 A budget of Rs 21.14 billion has been allocated. Rastra Bank had allocated Rs 3 billion or 14.19 per cent of the approved budget.
According to the report of the Auditor General, the Rastra Bank has not submitted the details of the loans disbursed in the areas eligible for interest subsidy and the subsidy given on loans to the Ministry of Finance.
Rastra Bank 2080. Up to 81, the ministry has a total of Rs. Rs. 27 billion has been released. An interest subvention of Rs 18.18 billion has been distributed. Out of the amount received from the Government of Nepal, Rs. The subsidy has not been disbursed as per the target of the program as there is no interest subsidy of Rs 8.81 billion in the bank. The remaining amount should be returned to the Federal Consolidated Fund after investigating the amount deposited in the bank by spending the budget.
Suggesting to prevent the misuse of subsidized loans and ensure its effectiveness, the Report states, “The status of implementation so far, the impact of grants, the role played in building a productive economy for the development of employment and entrepreneurship created due to grants should also be ensured.” ’
