Government to Allocate Additional NPR 250 Million to Revolving Fund for Repayment of Savings to Members of Distressed Cooperatives

The government is preparing to allocate an additional NPR 250 million to the revolving fund to refund the savings of members of distressed cooperative institutions. With this addition to the NPR 250 million already allocated in the current fiscal year, the total contribution will reach NPR 500 million. The process of depositing funds obtained from the sale of cooperative assets into the revolving fund and refunding savers has already commenced as of Monday.

Kathmandu, 5 Jestha – The government has decided to provide an additional NPR 250 million to the revolving fund as per law to refund the savings of members of distressed cooperatives. With the initial allocation of NPR 250 million in this fiscal year’s budget, the total government contribution will now amount to NPR 500 million.

The government has been implementing the “Establishment and Operation Procedure of the Revolving Fund, 2078 (2021-22)” to refund savings to members of distressed cooperatives. This fund includes government allocations as well as proceeds from the sale of assets owned by borrowers from distressed cooperatives. These funds are being used to reimburse affected savers. The refund process began on Monday.

The budget appropriation bill for fiscal year 2083 outlines resolving issues in the cooperative sector under Principle and Priority No. 36. Minister Dr. Swarnim Wagle reaffirmed the government’s commitment in the National Assembly on Tuesday to find a long-term solution. He stated, “The process of refunding savings to small savers of distressed cooperatives started this Monday. The government has allocated NPR 250 million to the revolving fund this year and is preparing to allocate an additional NPR 250 million.”

Minister Wagle, who heads the Ministry of Land Management and Cooperatives, affirmed that the ministry is advancing the savings refund process. He added, “The funds in the revolving fund do not come directly from the state treasury, and we do not believe in such distribution. Proceeds from the sale of cooperative assets are deposited into the revolving fund, from which the refunds to savers are being processed. The government has only provided temporary facilitation thus far.”