Cooperative Loan Defaults: Guarantors' Bank Accounts Now Subject to Freezing

The government has issued a stern directive targeting non-performing cooperative loans. New regulations empower authorities to freeze bank accounts not only of defaulting borrowers but also their guarantors and specified relatives. This move aims to enhance accountability and recover outstanding dues from troubled cooperatives. For everyday Nepalese citizens, this implies heightened financial risk when acting as a guarantor for cooperative loans. Investors must now exercise extreme caution and conduct thorough due diligence before offering guarantees, as their personal assets could be directly impacted.

• New directive freezes bank accounts of cooperative loan guarantors and defaulters, intensifying recovery efforts.