KATHMANDU: The government and representatives of microfinance victims have reached a five-point agreement, ending nationwide protests and a hunger strike that had been underway for several days.
The agreement was reached on Friday following two days of talks at the Ministry of Finance between the government’s negotiation team and the Microfinance and Financial Exploitation Victims’ Struggle Committee.
Under the agreement, the government will, within 15 days, submit recommendations to the Ministry of Finance for implementing the August 6, 2024 (Shrawan 22, 2081 BS) task force report, along with a detailed action plan aimed at resolving the problems faced by microfinance borrowers.
The recommendations will include practical measures to rehabilitate distressed borrowers, review existing provisions on blacklisting and collateral auctions, and propose other implementable solutions to address the grievances of affected borrowers.
The two sides also agreed to fully enforce the Operational Guidelines 2024 issued by the Nepal Rastra Bank (NRB) for Class ‘D’ licensed microfinance institutions, with the central bank directed to strictly monitor compliance.
In addition, the Ministry of Home Affairs will instruct District Administration Offices to take legal action against microfinance institutions found engaging in unlawful debt recovery practices, including harassment of borrowers, confiscation of household belongings, and coercive tactics such as stationing staff at borrowers’ homes until loan installments are paid.
Following the agreement, the Microfinance and Financial Exploitation Victims’ Struggle Committee announced an immediate end to all protests, demonstrations, and hunger strikes taking place across the country.
The victims had launched an indefinite collective hunger strike at Maitighar in Kathmandu on Tuesday, demanding that the government implement a Supreme Court order related to their grievances.
The government’s negotiation team was formed on Thursday through a ministerial decision by Finance Minister Swarnim Wagle, under the coordination of Joint Secretary Mahesh Acharya, to facilitate talks with the protesters.
