Find causes for loan non-recovery: AG

Attorney General (AG) Yagya Murti Banjade has spoken of the need for investigation to find out the causes of non-recovery of loans.The Attorney General said this at a symposium on 'Consolidation of the activities of the loan recovery tribunal and challenges in implementing the court decisions on disputes related to the recovery of loans' organised by the Nepal Rastra Bank .

He stressed that the bank's transactions should be transparent and the due procedure of the law should be fulfilled in sanctioning the loans.Attorney General Banjade said it would be difficult to realise back the loans if there is a flaw in the process of taking collateral against the loans sanctioned by the banks.

"Everyone should understand that the liquidation of the bank's investment means the financial ruin of public investment.Inaugurating the seminar, Governor of Nepal Rastra Bank Bijaya Nath Bhattarai said that the Lan Recovery Tribunal was an historic achievement in the two decades long financial reforms.

He said the Tribunal cleared financial cases worth Rs. 2.40 billion in the last three years, which raised only 2 per cent of the money.Governor Bhattarai said whether the Tribunal should function, as a part of the Judiciary or as a subordinate office of the Ministry should be clarified. He added that the Nepal Rastra Bank is always in favour of consolidating the Tribunal.

At the seminar, Registrar of the Supreme Court Dr. Ram Krishna Timilsina presented a working paper entitled 'Challenges seen in the implementation of the Supreme Court decisions' while Director of Nepal Rastra Bank Bhaskar Mani Gyawali presented a working paper entitled 'Legal provisions related to the recovery of loans and problems'.