Loan-sharking victims call off protest after nine-point deal with government

Victims of predatory lending in Nepal have called off their nine-day protest following a nine-point agreement with the government. The deal, signed in Kathmandu, commits the government to criminalizing loan sharking and drafting a specific law within three months. It also promises the establishment of dedicated tribunals to expedite cases and ensure justice for those affected.

The agreement follows intensive negotiations between a government team, led by Pushkar Sapkota of the Prime Minister's Office, and the victims' representatives. A key outcome is the government's pledge to table a Cabinet proposal to classify loan sharking as an economic crime. The proposed Predatory Lending Crime Control Act will invalidate fraudulent loan documents and criminalize 14 specific predatory practices.

The "Justice March on Foot," which began in Dhanusha, saw Home Minister Sudan Gurung engage directly with protesters for three days. He listened to the grievances of farmers and laborers who claimed to be on the verge of losing their land due to deceptive loan agreements. Gurung then persuaded the demonstrators to suspend their march for formal negotiations in the capital.

Under the new law, fraudulent promissory notes and land mortgages obtained under coercion will be invalidated. The legislation will also provide mechanisms for property restitution and compensation for victims. To prevent future exploitation, ward offices will verify the legal source of funds for private loan agreements, and legal action will be taken against those investing illicit income in predatory lending.

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The minister said he wanted to hear first-hand the grievances of farmers and labourers who claimed they had been driven to the brink of losing their land through fraudulent loan agreements.