Govt issues stern warning against loan defaulters as protest looms in Kathmandu

Kathmandu: In a brewing conflict between medical practitioner Durga Prasai and the government, tensions are escalating as Prasai prepares to lead a demonstration in Kathmandu on Thursday, advocating for the liberation of debtors from financial institutions, including banks.

His demand for a waiver of loans has been a persistent issue for the past few months, drawing attention and concern.

Prime Minister Pushpa Kamal Dahal, however, issued a stern warning during a discussion with the private sector and government agencies at Singha Durbar on Tuesday.

He unequivocally declared that the government would take strict actions against loan defaulters, emphasizing that anyone advocating for non-payment of debt or violating constitutional provisions, laws, values, and norms would face consequences.

Addressing the gathering, Prime Minister Dahal stated, “The State will take strict actions against whoever talks about non-payment of debt by force or violates the constitutional provisions, laws, values and norms.” He emphasized that dishonesty and immorality cannot be overlooked.

While not directly naming Durga Prasai, the Prime Minister hinted at the businessman and asserted that the State cannot grant exemptions to those who voluntarily default on loans.

He argued that forced non-payment of loans goes against the constitution, laws, and social values.

Prime Minister Dahal highlighted that Nepal Rastra Bank has been tasked with facilitating borrowers struggling to repay loans due to the sluggish economy.

Additionally, he announced plans to establish a separate specialized regulatory body within six months to address issues in cooperatives.

The Prime Minister mentioned ongoing efforts to improve the investment and production-friendly revenue structure based on suggestions from the commission for reforming the tax system.

As tensions rise between the government and those advocating for debt relief, the situation remains fluid, with the demonstration scheduled for Thursday adding to the uncertainty.