Govt mulls setting up labor bank

KATHMANDU, April 6:

The government is planning to establish a separate financial institution to provide easy banking services to migrant workers and their dependent families.
Suresh Man Shrestha, secretary at the Ministry of Labor and Employment (MoLE), said the government would soon initiate discussions with the private sector for establishing a labor bank.

The government had announced to open a separate financial institution for migrant workers in the common minimum program unveiled recently.

“Such financial institutions should provide low-interest loans and financial services for migrant workers,” Shrestha said, adding: “Such institutions can be set up in public private partnership. We will hold discussion with private sector in this regard.”

Secretary Shrestha also said the government can put initial capital in the institution from Migrant Workers´ Welfare Fund.
Labor bank can facilitate migrant workers in different ways. It could use remittances sent by migrant workers in productive sector.

Officials say the Ministry of Labor and Employment, Ministry of Finance and Nepal Rastra Bank (NRB) would jointly initiate discussions with the private sector on objectives and rationale of the labor bank.

Labor bank is the similar concept like Agriculture Development Bank and Nepal Industrial Development Corporation (NIDC) which were established with the objective to promote agriculture and industrial sector, respectively.

“Overseas returnees can easily take loan from the bank to start their business,” Shrestha said.
Nepal received remittances worth US$ 4.75 billion last year which is about 25 percent of the country´s Gross Domestic Product (GDP).

Financial literacy training organized

KATHMANDU, April 4: In a bid to raise awareness among families of migrant workers on proper management of money, the International Office of Migration (IOM), Nepal Mission organized six-day financial literacy training to government officials, NGO trainers, officials of financial cooperatives and a private banks.

“Each participant will each share their knowledge to educate 200 families who are dependent on remittances,” a press release issued by IOM Nepal Mission, said.
The training was based on ´financial literacy´ manual developed by IOM, the Ministry of Labor and Employment and the Nepal Rastra Bank (NRB). The training covered issues like managing remittances, setting up small businesses, savings, and plans and budgeting, among others.

“IOM Nepal is increasingly promoting participation of the private sector in migration issues and financial literacy is one of the key areas where we are working closely with financial institutions,” the press release quoted Maurizio Busatti, chief of IOM Nepal Mission, as saying. “This is important for the eventual reintegration of the migrants who will need to finance sustainable income generation activities.”

Financial literacy project is being jointly implemented by IOM and the Ministry of Labor and Employment. It is supported by the IOM Development Fund.

Source: Republica