Stabilization Fund Initiated in Nepal
- Date : Wednesday July 31, 2019
- Venue :
JULY 2019, Stabilization Fund Management Committee led by NEFSCUN Chairperson Mr. DB Basnet submitted draft procedure of operation to the secretary of cooperatives Ministry in Nepal.
Continuous lobbying and advocacy for 10 years of NEFSCUN, new cooperative Law has provision of Stabilization Fund for financial cooperatives with One Million US$ initial government contribution to build the fund. New the financial cooperative got a signal of protection as a result of orientation, advocacy seminar, regional workshops on Stabilization Fund from NEFSCUN. The new cooperative law 2017 and regulation 2019 have declared stabilization fund as mandatory fund allocation from the profit of every financial cooperatives.
After approving of this procedure by the ministry of coops, Stabilization Fund will be effective to collect and mobilize the funds to protect the image of financial cooperatives. While implementing the stabilization fund, Riskbased Supervision tools will be adopted to supervise the risk level of cooperatives to timely minimize and make the financial cooperatives stable into the communities.
Secretary of cooperative ministry Mr. Gopi Nath Mainaly, accepted this draft procedure -2019 initiated by the Stabilization Fund Management Committee and committed for executing this as soonest to provide clear framework of protecting network of financial cooperatives in Nepal.
In Nepal around 20,000 financial cooperatives are providing financial services to the community people out of them around 14,000 are the Savings and credit cooperatives. Ministry is taking the lead of mass amalgamation of financial cooperatives to make those institutions stronger.