•      Mon Jun 17 2024

Finance Ministry forms taskforce to study problems of microfinance

Kathmandu, March 15: The Ministry of Finance has formed a seven-member taskforce to identify problems surfaced in microfinance sector and recommend the resolving measures.

Finance Minister Barshaman Pun on Friday constituted the seven-member committee under the leadership of deputy governor of the Nepal Rastra Bank.

The committee comprises the central bank’s executive director with portfolio to look after microfinance sector and joint secretary and under-secretary looking after financial sector at the Ministry of Finance.

Likewise, Punaram (Maniram) Gyawali, Kshetra Bahadur Moktan and Luja Rai are representing the microfinance victims struggle committee as members in the taskforce.

Revenue Secretary Dr Ram Prasad Ghimire informed that the name of the taskforce coordinator will be decided by the Rastra Bank from among the two deputy governors.

The taskforce has been directed to submit a report within 60 days after determining the problems of microfinance.

Acting on the report of the taskforce, necessary policy and legal reforms will be mulled for regulation and reform in microfinance institutions, the Ministry of Finance said.

Earlier today, a six-point agreement was reached between the government and the agitating microfinance victims.

Point 5 of the agreement stated that a taskforce would be formed to identify the problems of the sector and provide solutions. With the signing of the agreement, the agitating parties have withdrawn all the programmes of the protest.

The Microfinance Victims’ Struggle Committee has been arguing that the borrowers have been facing troubles in repaying loans due to bad timing brought pout by the earthquake, blockade and Covid-19 pandemic.

They have been alleging that the microfinance institutions have breached the procedures and directives of the regulatory agency, Rastra Bank, while disbursing and recovering loans. #Nepal