KATHMANDU: The government and the Rashtra, Rastriyata, Dharma, Sanskriti Ra Nagarik Bachau Maha Abhiyan Nepal have reached a 14-point agreement, following which the campaign has decided to withdraw all its protest programmes from Saturday.
The agreement was signed following detailed discussions between representatives of the campaign, who had entered Kathmandu Valley and staged a sit-in at Pulchowk, and the government’s negotiation team.
Government negotiation team coordinator and Joint Secretary at the Office of the Prime Minister and Council of Ministers Liladhar Subedi and campaign negotiation committee coordinator Bishnu Bohara Chhetri signed the agreement on behalf of the two sides.
Under the agreement, banks and financial institutions will not be allowed to block social security allowances, medical expenses, pensions and salary accounts of borrowers listed on the credit blacklist.
Nepal Rastra Bank will review existing provisions concerning the blacklisting of microfinance borrowers and collateral auctions. The government will also collect and analyse data on loan waiver demands and develop feasible options for implementation through the Ministry of Finance, Nepal Rastra Bank and other concerned agencies.
Similarly, provisions will be introduced to facilitate the rescheduling of loans for borrowers who are unable to regularly repay principal and interest due to circumstances beyond their control.
Microfinance institutions will also be prohibited from taking advance cheques as collateral or making borrowers sign blank promissory notes. Such practices will be subject to regular monitoring.
The agreement also provides for an online system and toll-free hotline at Nepal Rastra Bank to address complaints and problems related to banks and financial institutions.
The Ministry of Finance will form a high-level committee comprising independent experts to study and recommend solutions to problems faced by microfinance institutions, their members, borrowers and employees. The committee will also consult affected borrowers and other stakeholders.
The agreement further states that legal action will be initiated against microfinance institutions or their employees involved in illegal practices such as intimidation, abuse, forcibly taking household goods or remaining at borrowers’ homes to pressure them into paying instalments.
Measures will also be introduced to make collateral auction and valuation procedures more transparent. Borrowers will have to be informed before notices for collateral auctions are issued.
Once the entire outstanding loan amount has been recovered through the auction of collateral, necessary legal provisions will be introduced to settle the loan and remove the borrower from the credit blacklist.
The two sides also agreed to review the deposit and fees required for borrowers seeking appeals before the Debt Recovery Tribunal and to address problems related to collateral valuation during loan disbursement and recovery.
The agreement also calls for identifying genuine landless squatters who have been displaced or left out of previous records and making arrangements for their permanent settlement in coordination with local governments.
Following the agreement, the Rashtra, Rastriyata, Dharma, Sanskriti Ra Nagarik Bachau Maha Abhiyan Nepal has announced the immediate withdrawal of all its sit-ins and protest programmes.
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