Govt, loan shark victims reach nine-point agreement

KATHMANDU: A nationwide protest campaign against predatory lending has been called off after the government and representatives of loan shark victims signed a nine-point agreement following days of negotiations.

The agreement came after a nine-day “March for Justice,” which began in Janakpur, passed through Bara and concluded with talks in Kathmandu.

The negotiations were facilitated by the Home Ministry, with a government team led by Pushkar Sapkota, Secretary at the Office of the Prime Minister, and a victims’ delegation headed by Awadhesh Kushwaha.

Under the deal, the government has pledged to classify loan sharking as a serious financial crime and table a proposal at the next Cabinet meeting declaring its eradication a national priority.

The agreement also provides for the cancellation of fraudulent promissory notes, forced mortgage deeds, conditional property transfers and blank cheques obtained through coercion.

The Home Ministry has committed to preparing a dedicated bill within three months to establish a special tribunal for loan sharking cases, ensuring the speedy return of confiscated property and appropriate compensation for victims.

To curb future abuses, financial transactions certified by local ward offices will require verified bank records and proof of legitimate income. The proposed law will criminalize practices such as inflating loan amounts on paper, capitalizing interest into the principal, refusing to issue receipts and forcing borrowers to sign blank documents.

The government also plans to use forensic document examinations and money laundering investigations to trace illegally acquired assets while expediting pending court cases involving loan shark victims.

The agreement establishes a high-level coordination committee and a dedicated help desk in Kathmandu to oversee implementation. District-level facilitation committees, led by Assistant Chief District Officers and including three representatives of victims, have been tasked with resolving outstanding complaints within six months.

The government has further pledged to introduce economic relief and financial assistance programmes through the annual budget to reduce dependence on predatory lenders, prompting protesters to suspend all ongoing demonstrations.