Nepal sets up recovery mechanism for troubled cooperatives
Summary
Nepal has established a revolving fund to return deposits of savers trapped in troubled cooperative institutions, with legal and administrative frameworks now in place.
Key Points
- Nepal government has set up a revolving fund to repay savings of members in troubled cooperatives.
- The fund is managed by the Problematic Cooperative Management Committee under new procedures published in the Nepal Gazette.
- Repayments will prioritize small depositors, single women, senior citizens, Dalit and indigenous communities, and persons with disabilities.
- Recovered amounts from asset auctions and cooperative recoveries will replenish the fund, with oversight by the Ministry of Land Management, Cooperatives and Poverty Alleviation.
