The Government of Nepal and representatives of the Microfinance and Financial Exploitation Against Farmers and Workers Movement Nepal have signed a seven-point agreement following talks at the Ministry of Finance in Singhadurbar. The agreement was reached on Bhadra 28, 2083, following a government decision to hold dialogue with the agitating group and seek solutions to issues raised by microfinance borrowers.

Under the agreement, a high-level committee formed to address microfinance-related problems will be asked to study outstanding issues and recommend solutions, including matters concerning collateral valuation, service charges and social banking, financial literacy and amendments to the Banking Offences and Punishment Act, 2064. A separate task force will also study problems related to loan rescheduling and restructuring, blacklisting, auction procedures and debt relief, and recommend workable options.

The agreement further calls for necessary directions to microfinance institutions in cases involving borrowers who are financially incapable, including situations where loans have been repaid through insurance or secured through debt-protection funds or borrowers have life insurance. Nepal Rastra Bank will also facilitate a dedicated help desk for complaints related to microfinance institutions. Licensed Class “D” microfinance institutions are to fully implement NRB’s Operational Guidelines, 2081, while district administrations have been directed to take legal action over practices such as employees staying at borrowers’ homes to pressure them, seizing household goods or livestock, or using other coercive methods for loan recovery. The protesting group, meanwhile, agreed to withdraw all agitation programmes centred in the Kathmandu Valley.