KATHMANDU: The Ministry of Finance has established a seven-member taskforce to examine and address challenges within the microfinance sector and propose potential solutions.
Finance Minister Barshaman Pun announced the formation of the taskforce on Friday, appointing a seven-member committee chaired by a deputy governor of the Nepal Rastra Bank.
The committee includes an executive director from the central bank responsible for overseeing the microfinance sector, as well as a joint secretary and under-secretary from the Ministry of Finance overseeing the financial sector.
Additionally, Punaram (Maniram) Gyawali, Kshetra Bahadur Moktan, and Luja Rai have been designated as representatives of the Microfinance Victims Struggle Committee, serving as members of the taskforce.
Dr. Ram Prasad Ghimire, the Revenue Secretary, stated that the taskforce coordinator will be selected by the Rastra Bank from among its two deputy governors.
The taskforce has been instructed to deliver a report within 60 days, identifying the challenges facing the microfinance sector.
Following the taskforce’s findings, the Ministry of Finance intends to consider necessary policy and legal reforms to regulate and improve microfinance institutions.
Earlier today, a six-point agreement was reached between the government and the protesting microfinance victims.
Point 5 of the agreement outlines the formation of a taskforce to identify sector issues and propose remedies, leading to the withdrawal of all protest activities by the concerned parties.
The Microfinance Victims Struggle Committee asserts that borrowers have encountered difficulties in loan repayment due to adverse circumstances such as the earthquake, blockade, and the Covid-19 pandemic.
They allege that microfinance institutions have violated procedures and directives set by the regulatory authority, the Rastra Bank, during loan disbursement and recovery processes.
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