Govt and microfinance victims reach six-point agreement

KATHMANDU, March 16: Finance Minister Barshaman Pun has formed a seven-member task force to identify and solve problems related to microfinance institutions. Minister Pun formed a seven-member committee under the leadership of the Deputy Governor of Nepal Rastra Bank on Friday evening.

The committee consists of an Executive Director who oversees the microfinance sector at the country’s central bank, a joint secretary who handles the microfinance sector at the Ministry of Finance, and an Under Secretary who is responsible for the same sector. Punaram (Maniram) Gyawali, Kshetra Bahadur Moktan, and Luja Rai from the Microfinance Struggle Committee are also in the Task Force.

NRB will choose the name from among the deputy governors as the Task Force coordinator, according to Secretary at the Ministry of Finance Dr. Ram Prasad Ghimire. Minister Pun said that the Task Force has been assigned the mandate to determine the problems of microfinance and submit the report within 60 days. The Task Force has been asked to conduct an on-site study of the demands of the agitating parties against microfinance and submit a report within 60 days of starting work with options for solutions. Based on the report of the Task Force, necessary policy and legal reforms for the regulation and reform of microfinance institutions will be initiated, the ministry said.

The Anti-Microfinance Struggle Committee has been protesting for a long time with demands such as the rehabilitation of the victims and the cancellation of the loans of the real victims who had no basis for paying the loan (injured, disabled, chronically ill) as a result of various factors such as the mega earthquake of 2015, border blockade, Covid-19 pandemic, and failure of the microfinance act in accordance with the procedures and instructions to be followed during loan disbursement and collection.

After being re-appointed as Finance Minister, Minister Pun instructed the negotiation team led by Joint Secretary Narayan Prasad Risal, Head of the Financial Sector Management Division of the Ministry, to hold talks with the protesting parties immediately. Under the direction of Pun, the negotiation team led by Risal held talks with the protesting parties on Thursday and Friday. 

A six-point agreement was reached between the government and the protestors earlier on Friday. The point 5 of the agreement states that a Task Force will be formed to identify the problem and find a solution. According to the agreement, the agitating party has withdrawn all the programs of the movement centered on Kathmandu since Friday.

 
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