KATHMANDU: The government will bear additional burden of Rs 23 billion if it writes off loans up to Rs 10 million, reveals a study commissioned by Small Debtor Problems Study Committee (SDPSC).

On January 18, the Ministry of Finance (MoF) set up the Harishchandra Acharya-coordinated committee to study the status of small borrowers and problems of Nepal Bank Ltd, Agriculture Development Bank Ltd, Rastriya Banijya Bank and Small Farmers Development Project.

“We are doing case and bank analysis,” said Acharya during a programme organised by National Banking Problem Settlement Joint Committee (NBPSJC) here today. He also accused MoF officials of not supporting the committee.

“There is no coordination between the Finance Minister and his subordinates,” he revealed.

The government has decided to write off loans up to Rs 30,000 given to farmers and interest on loans up to Rs 1,00,000 in this fiscal year’s budget.

This has placed a burden of Rs 9.11 billion on the national treasury, he said adding that the committee is working at a snail’s pace due to lack of support from banks, officials and other concerned authorities.

NBPSJC today handed over 889 cases of loan default to SDPSC for review. “The cases handed over are genuine as the borrowers could not repay the loan due to adverse situation,”

said NBPSJC chairperson Bhanu Kandel. “The decade-long conflict, industrial insecurity and other factors were obstacles in repaying the loan,” she added.

Most of the speakers urged the government to identify the real problem

of non-repayment of debt from the state-owned financial institutions and settle

the problem through mutual agreement.

“The government should identify real defaulters and those bound under circumstances,” urged Kosh Raj Karki who studied 889 cases of small debtors for NBPSJC.