KATHMANDU: Finance Minister Janardan Sharma has said that a certain percentage of money in government institutions will be deposited in microfinance funds that will be used to provide concessional loans to small farmers and small startups.
Minister Sharma said this while addressing the 49th anniversary of Deposit and Credit Guarantee Fund (DCGF) in Kathmandu. He said the process of setting up the fund for depositing the amount is underway.
Minister Sharma mentioned that it is difficult and complicated for small farmers and small businesspersons to get loans from banks and financial institutions (BFIs) and said the loans will be provided by the microfinance fund easily.
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Finance Minister Janardan Sharma addresses a programme organised on the occasion of 49th anniversary of Deposit and Credit Guarantee Fund (DCGF) in Kathmandu, on Tuesday, September 220, 2022.[/caption]
The Minister shared that all BFIs are also developing a method to provide loans to small entrepreneurs and farmers through the same fund. He also urged BFIs and stakeholders to give suggestions for the procedure of the fund.
The budget for fiscal year 2022/23 mentions that a microfinance fund of 500 billion will be created. The concessional loans will be given to small farmers, small entrepreneurs and startups through the same fund.
Likewise, Minister Sharma urged BFIs to invest in small production-oriented businesses and emphasized that imports cannot be substituted without production. He said that this would increase production and bring agricultural produce to a level that can be processed and exported through small industries. He opined that all investors should pay attention to the production sector.
Further, Finance Minister Sharma informed that the liquidity problem will be solved by the Finance Ministry of Finance and other agencies after holding a comprehensive discussion under the leadership of Nepal Rastra Bank.
Sharma mentioned that pandemics, natural disasters and unexpected events occurring in the world are adversely affecting inflation and the economy. He opined that even in such conditions, there is an urgent need to build an economy that meets the minimum needs. Let's not dream too big", he said, "There should be an economy that can easily handle the needs of the minimum people. We have enough resources and means for this."
Meanwhile, a task force formed by the ministry to study the fund submitted a report with the draft of microfinance fund management regulations to Minister Sharma on Tuesday. On August 30 2022, the task force formed under the coordination of the Ministry's Joint Secretary, Suman Dahal, collected suggestions from stakeholders and submitted the report.
Minister Sharma received the report along with regulations and said the fund will be implemented after making legal and technical arrangements soon.
On the occasion, NRB Governor Maha Prasad Adhikari commented that although it had been a long time since the DCGF came into being, it could not devise effective policies, programmes and plans.
Urging the concerned ones to pay attention to this aspect, Governor Adhikari requested the DCGF to deliver effectively devising long-term plans and to function within the jurisdiction of the DCGF's Act. "The DCGF should not only collect money. Consider investing in other sectors as well."
Likewise, Revenue Secretary Rameshwor Dangal, also Chairperson of the DCGF, pledged utmost efforts on his part to make the fund more effective.
The DCGF, as a deposit insurer, started the deposit guarantee scheme in Nepal in 2010.
Finance Minister Janardan Sharma addresses a programme organised on the occasion of 49th anniversary of Deposit and Credit Guarantee Fund (DCGF) in Kathmandu, on Tuesday, September 220, 2022.[/caption]
The Minister shared that all BFIs are also developing a method to provide loans to small entrepreneurs and farmers through the same fund. He also urged BFIs and stakeholders to give suggestions for the procedure of the fund.
The budget for fiscal year 2022/23 mentions that a microfinance fund of 500 billion will be created. The concessional loans will be given to small farmers, small entrepreneurs and startups through the same fund.
Likewise, Minister Sharma urged BFIs to invest in small production-oriented businesses and emphasized that imports cannot be substituted without production. He said that this would increase production and bring agricultural produce to a level that can be processed and exported through small industries. He opined that all investors should pay attention to the production sector.
Further, Finance Minister Sharma informed that the liquidity problem will be solved by the Finance Ministry of Finance and other agencies after holding a comprehensive discussion under the leadership of Nepal Rastra Bank.
Sharma mentioned that pandemics, natural disasters and unexpected events occurring in the world are adversely affecting inflation and the economy. He opined that even in such conditions, there is an urgent need to build an economy that meets the minimum needs. Let's not dream too big", he said, "There should be an economy that can easily handle the needs of the minimum people. We have enough resources and means for this."
Meanwhile, a task force formed by the ministry to study the fund submitted a report with the draft of microfinance fund management regulations to Minister Sharma on Tuesday. On August 30 2022, the task force formed under the coordination of the Ministry's Joint Secretary, Suman Dahal, collected suggestions from stakeholders and submitted the report.
Minister Sharma received the report along with regulations and said the fund will be implemented after making legal and technical arrangements soon.
On the occasion, NRB Governor Maha Prasad Adhikari commented that although it had been a long time since the DCGF came into being, it could not devise effective policies, programmes and plans.
Urging the concerned ones to pay attention to this aspect, Governor Adhikari requested the DCGF to deliver effectively devising long-term plans and to function within the jurisdiction of the DCGF's Act. "The DCGF should not only collect money. Consider investing in other sectors as well."
Likewise, Revenue Secretary Rameshwor Dangal, also Chairperson of the DCGF, pledged utmost efforts on his part to make the fund more effective.
The DCGF, as a deposit insurer, started the deposit guarantee scheme in Nepal in 2010.
Published Date: September 21, 2022, 12:00 am
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