Kathmandu. A half-day interaction program on Agri CGS Product Design – Stakeholders Feedback organized by deposit and credit protection fund in collaboration with UNDP concluded today. The event was held at The Royal Singi Hotel in Kathmandu.
Officials of the Fund, CHIEF Executive Officers of various banks and financial institutions, departmental heads of the Loan Department and other representatives were present on the occasion.
The main objective of this interaction program was to seek the opinion of the stakeholders regarding the new Agricultural Credit Protection Scheme (Indivisual Agriculture Guarantee Scheme) being formulated by the Fund in view of the fact that it is necessary to increase investment by reducing the risk of credit flowing to the agricultural sector in order to expand institutional credit in the agricultural sector for the sustainable development of the economy.
On the occasion, Chief Executive Officer of the Fund Ramesh Ghimire presented a working paper on the proposed new agricultural loan protection scheme.
He said the participants expressed their views on the current status of institutional credit access in the agriculture sector, areas in need of immediate credit expansion and additional areas of potential and suggested the points to be kept in mind while formulating the new security plan by the Fund.
The participants also suggested that the percentage of security fees and compensation claims to be maintained in the new security scheme should be determined scientifically keeping in mind the international good practice.
Undp, an international development partner organization, has technical support in formulating a new plan for agricultural credit protection to be formulated by the Fund. UNDP has collaborated with the Fund to increase institutional credit flow to the agriculture sector and help expand financial access.
