Lauding the role of micro-finance in poverty reduction, Minister Pandey also said the government would come up with specific regulation to allow micro-finance sector to mobilize resources. [break]
Inaugurating the micro-finance conference in the capital on Sunday, Pandey called upon the micro-finance sector to explore the ways to lower interest on lending to general public, who are complaining about excessive interest rates.
“The government is ready to bear the cost of dealing with small resources in the society, if social mobilization is the major cause behind the rising interest on credit,” he said.
Speaking on the occasion, Dr Hari Har Dev Panta, national coordinator of the three-day conference, said that micro-finance sector has been providing service to over 1.8 million underprivileged people.
Finance Secretary Rameshwore Khanal said the shortage of fund as well as political interference and lack of energy are the major factors affecting economic activities in the country. Hailing the contribution of micro-finance sector in national economy, Khanal urged the micro-finance sector to seek the ways to reduce interest rates on lending.
Krishna Bahadur Manandhar, acting governor of Nepal Rastra Bank, said micro-finance sector has succeeded to make significant achievement, which is not less notable than the contribution of banking sector over the last seven decades. He also suggested the micro-finance companies to expand their services in rural areas where banking services are yet to penetrate. Manandhar also informed that the NRB is in favor of allowing micro-finance sector to mobilize deposit by formulating Micro Finance Act.
Chairman of Center for Finance Ganesh Bahadur Thapa also said the political interference and instability has prevented the progress of micro-finance sector in the country. He also complained that the bank and finance companies have failed to abide by the central bank´s directives to provide loan at concession rate for micro-finance sector.
A total 15 micro-finance development banks, 45 financial mediator non-government organizations and more than 5,000 credit co-operatives are operating across the country.
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