Private Banks will not finance the “Youth Self-employment Program”

Demanding full assurance of the Banks investment, private and state-owned banks at Banepa and Dhulikhel of Kavre district has decided not to provide bank loans without collateral under the government’s youth self employment scheme announced in the government budget this fiscal year.

Government had announced Rs. 200,000 to every unemployed youth without any collateral especially those who have some skills to operate their business and make themselves self reliant.

A joint meeting of Kavre Chamber of Commerce and the banks representatives on Saturday came up with a decision that they will not provide the loans for the youth self employment program as the government policy was not clear to them.

Mr. Raghu Nath Ghimire, chief of the loan department at Annapurna Development Bank said that the government had failed to provide enough assurance that the banks investments will be secured.

According to the Agriculture Development Bank Limited (ADBL) people who were facilitated from the loans and interest wavier program from ADBL were again filling up the self-employment forms as they were banned from getting loans from any banks for two years.

“The government policy was not clear in this regard,” the ADBL claimed.

However, Rana Bahadur Shrestha, under secretary at the Ministry of Finance and Member Secretary of the Self-employment funds ensured the banks that their investment would be safe and the finance ministry would be responsible to return the banks loans.

He urged the banks to provide loan up to Rs. 200,000 under the self employment programme without any fear. He said that the ministry of finance had collected Rs.420 million in the Self-employment funds.

But the banks rejected secretary request adding that the government should give them a full assurance that their investment would be safe.

The Kavre Chambers of Commerce had provided orientation training to over 3,500 youth as a part of youth self-employment scheme. Kavre had received 14,000 applications under this scheme.
Source: arthakoarha.com