E-Kantipur

KATHMANDU, APR 27 - 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 (NBL) 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, chief executive officer of NBL." But we have taken the pledge positively."

According to him, the borrower's proposal is being discussed by the NBL'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 (RBB) 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 RBB, Kanaudiya paid interest consecutively for two quarters of a year after the restructuring of his loans. He has failed to pay interest for the latest two quarters citing under-utilisation of his factory.

Shrestha said that the consortium has already agreed to withdraw the case filed against him at the DRT. But he will have to pay the necessary fees to the DRT, according to RBB.

Another big defaulter Arun Chand of Basuling Sugar

Mill has also approached his banks to repay loans amounting to Rs. 1.58 billion as of three years ago including principal and interest.

He had borrowed Rs. 580 million from the consortium consisting of Agricultural Development Bank Limited (ADBL), NBL, RBB, NIDC and the Employees Provident Fund.

Chand, who is the son of former prime minister Lokendra Bahadur Chand, has proposed to repay the entire principal and interest recalculated on the basis of a reduced 7 percent interest rate. "We are discussing the possible offer to Chand," said Shrestha.

According to him, another big defaulter Magantu Ram's group has also approached his bank saying that he would only repay the principal that stands at Rs. 880 million.

DEfault cases

    Big defaulteres willing to repay loans

    Banks are in process of withdrawing cases filed against some defaulters from Debt Recovery Tribunal

    Cases against Khandsari Sugar Mill and Mahalaxmi Sugar Mill

    Many defaulters seek amnesty to interests for repayment

Posted on: 2010-04-27 07:43

Post Your Comment

Please note that all the fields marked * are mandatory.
* Full Name
* Address
* Email Address
* Comment
* Captcha	Get another CAPTCHA code
Note:	Comments containing abusive words or slander shall not be published.