Troubled Ambe Koshi Cooperative Begins Refunds to Small Savers

The distressed cooperative management committee, established by the Koshi Province government, has refunded savings amounting to NPR 2,857,000 to 287 members whose savings were less than NPR 20,000. The committee is preparing to return deposits up to NPR 100,000 by collecting funds from borrowers, and if loan recovery falls short, the cooperative’s and directors’ assets will be auctioned. On Poush 23, 2081 BS, the provincial government declared Ambe Koshi Cooperative as distressed and commenced management, loan recovery, and collateral auction processes. (Chaitra 30, Biratnagar)

Small savers of the troubled Ambe Koshi Savings and Credit Cooperative Limited, based in Itahari, have begun receiving refunds. Prioritizing members with savings under NPR 20,000, the distressed cooperative management committee appointed by the Koshi Province government has processed these repayments. Committee Chairman Bharat Bahadur Thapa confirmed that NPR 2,857,000 has been transferred to the bank accounts of 287 small savers with savings below NPR 20,000.

Since taking over the management of the distressed Ambe Koshi Cooperative, the committee has recovered NPR 18.7 million of the loans originally invested by the cooperative. The total outstanding loans to be recovered exceed NPR 426 million. The committee has received refund applications totaling NPR 248.8 million. According to committee member Jeevan Kafle, the loan recovery is ongoing, and as a first step, savings up to NPR 20,000 have been refunded. Preparations are underway to refund savings up to NPR 100,000 next. He stated, “If loan recovery is insufficient, the cooperative’s and directors’ assets will be auctioned to reimburse the savings.”

The provincial government declared Ambe Koshi Cooperative distressed on Poush 23, 2081 BS. Following this declaration, the government-appointed committee took charge and initiated asset management, loan recovery, and collateral auction procedures. Koshi Province’s Minister for Industry, Agriculture, and Cooperatives, Israel Mansuri, stated that this is the first time the provincial government has initiated such refund efforts. He said, “This is the first time in the country that refunds have been started in this manner. In the initial phase, savings up to NPR 20,000 have been refunded, and soon we plan to refund up to NPR 100,000.”