Cooperative Crisis: Billions Lost, Savers Demand Action
Summary
Billions of rupees are stuck in problematic cooperatives in Nepal, with over 76,000 savers filing claims totaling more than 45 billion rupees. The government and the Problematic Cooperative Management Committee plan to start returning savings to small savers from early Jestha, but recovered funds remain insufficient. Measures to pressure debtors include publicizing names and freezing bank accounts.
Key Points
- Over 76,000 savers have claims totaling more than 45 billion rupees in problematic cooperatives across Nepal.
- The government created a revolving fund with only 250 million rupees, which is 0.54% of total claims, to return savings to affected individuals.
- From the first week of Jestha, the committee intends to prioritize returning savings to individuals with less than 500,000 rupees in deposits.
- The government will publish the names of loan defaulters from problematic cooperatives and enforce measures like freezing bank accounts and passports for non-payment within 35 days.
