Government, Victims of Predatory Lending Close to Agreement

Negotiations between the Nepali government and victims of predatory lending have shown significant progress, with both sides reporting a positive direction toward a formal agreement. While a final accord was not reached on Thursday, the discussions have solidified a preliminary understanding.

The government team, led by Pushkar Sapkota, secretary at the Office of the Prime Minister and Council of Ministers, met with representatives from the Farmers and Labourers' Movement Against Usury. This meeting followed an earlier understanding between Home Minister Sudan Gurung and the victims.

Under the proposed framework, the government commits to classifying usury as a serious economic crime and establishing a dedicated legal structure to combat predatory lending. This includes declaring usury an institutionalized form of economic exploitation and invalidating fraudulent debt documents. A special law to address these issues is slated to be drafted within three months.

Nirg Navin, a member of the victims' negotiating team, described the first day of talks as "positive." The parties are set to resume negotiations on Friday to formalize the understanding into a written agreement. The movement, which began with victims marching from Janakpur to Kathmandu on June 25, aims to pressure the government into providing justice and restitution for those affected by loan-sharking practices.

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The first day of talks has ended on a positive note.