The government’s negotiation team and the Microfinance and Financial Exploitation Struggle Committee have reached an agreement following talks on the demands and problems related to microfinance institutions. According to a Ministry of Finance press release dated Shrawan 15, 2083, the two sides held discussions at the ministry’s Suwarna Hall in a positive and cordial environment. As part of the agreement, recommendations for implementing the report prepared by the task force formed to address the problems faced by microfinance victims are to be submitted to the Ministry of Finance within 15 days.

The agreement also calls for workable measures to rehabilitate microfinance borrowers facing difficulties, including a rehabilitation programme and a review of existing provisions concerning blacklisting and the auction of collateral. It further states that Class ‘D’ licensed microfinance financial institutions must fully implement the operating guidelines issued by Nepal Rastra Bank in 2081, with the central bank required to strictly monitor compliance.

The struggle committee, meanwhile, has agreed to end all protests and hunger strikes across the country from the date of the agreement. The government has also addressed complaints of abusive loan-recovery practices, including alleged harassment of borrowers, removal of household belongings and employees remaining at borrowers’ homes to pressure them over unpaid instalments. Victims have been asked to immediately file complaints with their District Administration Office, while the Ministry of Home Affairs will direct district administrations to take legal action against practices found to violate existing laws.