Govt repaying debts of troubled cooperatives

Kathmandu. The government has clarified that the amount received from the loan recovery of the troubled cooperatives has been returned to the affected savers.

Issuing a press release, the Problematic Cooperative Management Committee under the Ministry of Land Management, Cooperatives, Federal Affairs and General Administration said its attention has been drawn to the public complaints and confusion about the return of savings from the state treasury.

According to the Troubled Cooperative Management Committee, the work of returning the savings of small savers of 20 cooperatives declared as problematic is being done in a phased manner. However, the revolving fund has not yet been set up.

According to the committee, the task of recovering loans from problematic cooperatives and returning the savings from the money received from asset management to the savers of the cooperatives is being carried out continuously as per the prevailing legal provision.

The statement reads, “The committee has not yet established a revolving fund and the account has not been operated, however, the task of recovering loans from the problematic cooperatives and returning the savings from the money received from the property management to the savers of the cooperatives is being carried out continuously as per the prevailing legal provision.” ’

Point No. 100 of the 100 agendas approved by the meeting of the Council of Ministers of the Government of Nepal on 2082-12/13. In order to implement the provision in Rule 99, the Government of Nepal, Council of Ministers has issued the ‘Procedure on Establishment and Operation of the Savings Back Revolving Fund of the Members of the Problematic Cooperatives, 2083’ under the Problematic Cooperative Management Committee.

According to the committee, the committee has been working by giving priority to the recovery of loans and has been returning the amount recovered from the borrowers of the cooperatives to the savers of the cooperatives so far.