Flood Victims Face Debt Crisis After Losing Homes and Livelihoods
Summary
Flood victims in the Bhote Koshi corridor have lost homes, land, and livelihoods, leaving many unable to repay bank and cooperative loans. The Ministry of Finance has directed Nepal Rastra Bank to consider special relief measures, but borrowers are still waiting for a clear policy response.
Key Points
- Floods in the Bhote Koshi and Trishuli corridor destroyed settlements in Rasuwa and Nuwakot, leaving many survivors homeless and deeply in debt.
- Victims say loans from banks and cooperatives remain even though their houses, land, and businesses were washed away.
- The Ministry of Finance has told Nepal Rastra Bank to prepare special facilities such as rescheduling, restructuring, and lower interest rates for flood-affected borrowers.
- Nepal Rastra Bank says it cannot fully waive loans on its own and is studying the damage before issuing a policy decision.
