Tuesday, August 14, 2018

Go to areas where rate of poverty is high, Khatiwada tells MFIs


Kathmandu, Aug. 13:
Finance Minister Dr. Yuba Raj Khatiwada has directed the microfinance institutions (MFIs) to go to the areas where the rate of poverty is high.

“Yours’ is the business that entails the value of social responsibility of creating employment and reducing poverty. Go to the remote areas and collaborate with the local governments,” he said while speaking at the 27th Anniversary celebration programme of the Centre for Self-help Development (CSD) on Monday.

He said that Nepal had made significant progress in terms reducing poverty with almost one per cent down a year, and international development partners such as the World Bank had appreciated it, but the result of poverty reduction varied across various caste and ethnicities.

The socio-economic transformation of a society is impossible without the synchronisation of entrepreneurship and technology. The government and the regulatory body are ready to provide any kind of support and cooperation required for the mission of poverty alleviation, he said.

According to the Finance Minister, microfinance, the Class ‘D’ banks, can help increase people’s access to finance and inclusive development, hence they should focus on supporting to create enterprises, entrepreneurs and employment.

“The government is ready to support you with better policies, but it wants visible results. So, develop work plans and strategies. Our aim is to end poverty through entrepreneurship development and employment,” he said.

Dr. Khatiwada warned the MFIs not to promote multiple lending.

He also said that the government had been trying to make employment a constitutionally guaranteed fundamental right.

CSD Chairman Shankar Man Shrestha said that the greatest problem was the rise of unhealthy competition and multiple financing by the MFIs which had resulted in over indebtedness of the clients.

When microfinance first started we were able to reach considerable number of the rural population and provide them with the required services. But now, with the rise of the number of MFIs, the fundamentals of microfinance have been forgotten,” he said.

Surkhet-based Batabaran Sudhar Bahuuddeshiya Sahakari Sanstha Ltd. was awarded with a purse of Rs. 100,000 for its impressive role in entrepreneurship development.


Published in The Rising Nepal daily on 14 August 2018. 

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