KATHMANDU: Finance Minister Janardan Sharma has urged saving and credit cooperatives to invest 60 percent of their fund in productive sectors.

In his address to a ceremony to mark the 34th establishment day of the Nepal Federation of Savings and Credit Cooperative Unions Ltd. (NEFSCUN) here today, he called for more investment of cooperatives in productive areas.

As he said, investment in housing, land, or in the purchase of automobiles would not yield expected results.

Stating that he had a plan for converting the consumerism-based economy to a productive one, the Finance Minister appealed to cooperatives for help towards that end.

“If you are facing issues, I am ready to cooperate for finding a solution. But I urge you all to invest at least 60 percent of the investment in the productive sector and contribute to alleviating poverty.’’

The Minister said he heard that cooperatives were charging up to 18 percent interest in loans for the poor and stressed the need of reducing it.

“We have cases that some cooperatives have ruined the lives of people by cheating them of their savings and urged the NEFSCUN to be serious towards the possibility of recurrence of such cases.”

He further expressed his views that NEFSCUN would play a role to prevent the misappropriation of the people’s savings by the founders of the cooperative themselves.

The Finance Minister expressed his concern that the stabilization fund was yet to be set up, directing for its establishment within a month and apprise him of it.

Over 7,000 savings and credit cooperatives with 3.4 million members are associated with the NEFSCUN which has its network in 76 districts.
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