Govt vows action against those inciting loan default

KATHMANDU: The government has decided to act tough against individuals who are saying publicly that they won’t repay bank loans.

Minister for Finance, Barsha Man Pun, told a delegation of the Nepal Bankers Association (NBA) on Thursday that Prime Minister Pushpa Kamal Dahal, during the cabinet meeting earlier that morning, instructed the concerned ministries and agencies to take necessary action against such individuals.

“The government will strongly control the tendency of not repaying loans that banks disburse from deposits mobilized from common people,” Pun said. “The government can no longer overlook campaigns provoking people to not repay their loans.”

Earlier, the NBA delegation led by President Sunil KC drew the government’s attention toward campaigns against the banking sector.

In another development, the Government of India has issued a notice to the board of directors of the Central Bank and other financial institutions.