Finance Minister Janardan Sharma has urged savings and credit cooperatives to invest 60 percent of their funds in the productive sector.
Addressing a ceremony to mar
k the 34th foundation day of the Nepal Federation of Savings and Credit Cooperatives (NEFSCUN), he called for increased investment by cooperatives in the productive sector.
He said investing in housing, land or buying cars would not produce the desired results.
The finance minister noted that he has a plan to transform the consumer-based economy into a productive one and called on cooperatives to help in that direction.
“If you have a problem, I am willing to cooperate and find a solution. But I call on all of you to do your part to alleviate poverty by investing at least 60 percent in the productive sector.”
The minister said he had heard that cooperatives were charging interest rates of up to 18 pe
rcent on loans to the poor and stressed the need to reduce them.” We have cases where some cooperatives have ruined people’s lives by cheating them out of their savings and urged NEFSCUN to take seriously the possibility of such cases happening again.”
He also said that NEFSCUN will play a role in preventing the founders of
the cooperatives themselves from misappropriating people’s savings. The finance minister expressed concern that the stabilization fund has not yet been established, giving one month’s notice.
More than 7,000 savings and credit cooperatives, with 3.4 million members, are linked to NEFSCUN, whose network spans 76 districts.