Nine-Point Agreement Reached Between Interest Loan Victims and Government: What’s Next?
After repeated discussions and hours of negotiations on Friday, participants have confirmed that a nine-point agreement has been reached between the agitating interest loan victims and the government. Following the agreement, those who had been protesting for the past nine days have decided to suspend their movement. The Prime Minister’s Secretariat has disclosed that the government plans to formally recognize interest loan practices as economic crimes and propose their complete eradication at the upcoming Cabinet meeting. “As a result, all fraudulent promissory notes, sight drafts, confiscated passes, and compulsory checks will automatically be declared illegal and annulled,” the Secretariat stated post-negotiation.
According to the agreement, the Ministry of Home Affairs will draft a special bill within three months to create legislation controlling interest loan practices. Additionally, a separate judicial tribunal will be established, committed to hearing cases, returning victims’ assets, and ensuring appropriate compensation. The agreement also mandates that transactions certified at ward offices require proof of legitimate sources of funds and corresponding bank transaction records. Stringent actions will be taken against those investing in interest loan activities. “The new law will criminalize actions such as fabricating documents for large sums, compounding interest unlawfully, withholding payments from borrowers, charging excessive interest, intimidation, physical and mental abuse, coercion to sign blank checks or documents, and seizing assets,” the Prime Minister’s Secretariat explained.
Investigations into interest loan activities will include forensic lab testing of written evidence, tracing and purification of asset origins, and inquiry following criminal procedure codes. Legal assistance will be provided to victims during court proceedings. To address complaints, a high-level coordination committee and a dedicated desk will be established under the coordination of the Secretary of the Prime Minister and Cabinet Office, according to participants. At the district level, a facilitation committee including victims’ representatives will be formed under the leadership of the Assistant Chief District Officer to resolve all complaints within six months. Monitoring will be overseen by the Chief District Officer.
Alongside measures to assist victims out of the cycle of interest loans, including the introduction of economic aid and relief packages in the annual budget, victims have suspended all protest activities, the government announced. The protest began with a ‘Justice March on Foot’ from Tritiyagachi in Janakpur on Ashadh 25, reaching Nijgadh in Bara, where on Ashadh 32 a negotiation team was agreed upon between Home Minister Sudhan Gurung and representatives of the victims in Kathmandu. The verbal agreement reached between the government team and the interest loan victims’ representatives in Simara, Bara, has now been formalized into a written accord. The government halted the protesters traveling on foot from Janakpur to Kathmandu and advanced the negotiation process. Prior to this, a deep discussion between both parties at the Prime Minister and Cabinet Office in Singha Durbar continued until late evening on Thursday. Based on those discussions and the verbal agreement, the final agreement was concluded on Friday, the Prime Minister’s Secretariat reported. The negotiation teams included a three-member team led by Secretary Pushkar Sapkota from the Prime Minister and Cabinet Office and a six-member team led by Awadhesh Kushwaha from the victims’ side.
