Summary：**National Assembly Passes Landmark Debt Recovery Bill, Sparking Hope for Economic Relief** *Kathma

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**National Assembly Passes Landmark Debt Recovery Bill, Sparking Hope for Economic Relief**

*Kathmandu:* The National Assembly has approved the **National Debt Recovery Bill, 2083** in its session today, marking a pivotal step toward alleviating the country’s mounting credit stress. The legislation, transmitted from the House of Representatives with a formal message, underwent a clause‑by‑clause review before securing the Assembly’s endorsement. Lawmakers described the measure as a long‑awaited tool to strengthen creditor rights while providing a structured pathway for distressed borrowers to rehabilitate their obligations.

### Key Developments
The bill introduces a centralized debt‑recovery tribunal empowered to adjudicate disputes between lenders and defaulters within a 90‑day window, a significant reduction from the current average of six months. It mandates the creation of a public registry of secured and unsecured claims, enhancing transparency for banks, micro‑finance institutions, and informal lenders. Penalties for fraudulent concealment of assets have been tightened, and the legislation allows for the temporary suspension of business licenses for repeat defaulters, aiming to deter willful non‑payment. Supporters in the Assembly highlighted that the bill aligns Nepal’s recovery framework with regional best practices, potentially boosting investor confidence in the domestic credit market.

### Industry Analysis
Financial analysts view the bill as a catalyst for stabilizing the non‑performing loan (NPL) ratio, which has hovered above 12 % in the commercial banking sector. By streamlining recovery procedures, lenders may reduce provisioning costs and redirect capital toward productive lending. The public claim registry is expected to curb duplicate financing