Development banks to introduce green deposit, green loan schemes

KATHMANDU: Development banks have planned to introduce 'Green Deposit Scheme' and 'Green Loan Scheme' to contribute to sustainable development. The Executive Committee of Development Bankers Association Nepal (DEBAN) decided to bring the investments made in the productive sectors under the 'Green Loan Scheme'. The productive sectors to be brought under the scheme include agricultural enterprise, forestry enterprise, hydropower, solar energy, bioenergy, wind power, Cable car/ropeway, electric vehicles and wastewater treatment enterprises. Since the investment of banks and financial institutions (BFIs) is increasing in relatively less productive areas, DEBAN has decided to introduce 'Green Loan Scheme' with the aim of increasing credit in areas that support productive and sustainable development. The association is introducing 'Green Deposit Scheme' with the aim of gradually securing resources for investments in 'Green loan scheme'. The product paper of the loan scheme will be developed in such a way that the 'Green Deposit Scheme' will provide 0.25 percentage points more interest than other savings and term deposits and the 'Green Loan Scheme' will provide loans at a lower interest rate than other similar loan schemes by 0.25 percentage point. According to the association, member banks can develop the product paper to provide more facilities as per the business strategy of their respective banks. Any industry/business that emits carbon and affects climate change will not be allowed to take green loan facility. DEBAN has already issued a circular to its member banks to bring the 'Green Deposit Scheme' and 'Green Loan Scheme' to the market after getting the product paper approved by the Board of Directors of their banks. READ ALSO:

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