KATHMANDU, May 29: The government has announced plans to establish a revolving fund to refund savings deposited in troubled cooperatives. Finance Minister Bishnu Paudel made the announcement during his presentation of the budget for the upcoming Fiscal Year (FY) 2025/26.
“Deposits of up to Rs 500,000 in cooperative institutions will be safeguarded through the Deposit and Credit Protection Fund,” said Minister Paudel. “I have allocated seed capital for a revolving fund to reimburse depositors, using proceeds from the auction of assets belonging to individuals who misused government funds.”
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Minister Paudel also stated that the assets and passports of operators, officials, and loan defaulters of troubled cooperatives will be frozen.
