Partners with Global IME Bank and Bank of Kathmandu to Introduce Financial Innovations for Rural Farmer Communities, DFID Sakchyam launched a program
Under DFID Sakchyam Access to Finance Program, Global IME Bank and Bank of Kathmandu rolled out the details of their partnership involving two new financial innovations for rural farmer communities in the Mid- and Far-Western Regions (MWFW) in joint collaboration with Gyan Agri (KL Dugar Group) and Mahakali Sugar Mills.
Present at the event were Maha Prasad Adhikari, Deputy Governor, Nepal Rastra Bank; Mr Upendra Poudyal, President, Nepal Bankers’ Association; Joint Secretary of the Ministry of Finance Mr Surya Prasad Acharya; Ashufta Alam, Team Leader, Economic Development Team, DFID Nepal and other high level officials from the GoN, and the media.
In his address, Maha Prasad Acharya said, “Sakchyam’s rollout of these two financial products in partnership with commercial banks and prominent business houses is interesting because they have done their own analysis prior to launching the products that are required by the rural poor. I would like to thank DFID for their support in making these innovations happen.”
Global IME Bank’s(GIBL) Sakchyam Post Harvest Financing product developed with Gyan Agri takes much sought-after access to finance to farmers in Banke, Bardia, Kalilali, and Kanchanpur. “Global IME Bank has been inspiring promotion of products in the larger interests of small farmers. The current engagement provides farmers secured storage and an opportunity to gain from future prices rises.
“We remain committed,” said GIBL CEO Mr. Ratna Raj Bajracharya. Bank of Kathmandu’s (BoK) innovative Sakchyam Sana Kisan Ukhu Karja productwill make it possible for farmers to get attractively priced loans of up to 70% of the value of crops sold to Mahakali Sugar Mill immediately upon delivery.
BoK CEO Ajay Shrestha, said, “This innovation takes us a step closer toward our goal of providing timely access to credit to marginalized and disadvantaged segments of our country.”
Both projects - slated to start in early 2015 with a three-year project duration -provide access to finance to farmers when they need it the most and help banks initiate a relationship with previously “un-banked” people. “The launch of these 2 new products with prominent financial institutions and agricultural value chain entities embodies Sakchyam’s resolve to secure the financial future of poor people and enterprises,”said Baljit Vohra, Team Leader, DFID Sakcyham Program.
Signing of the partnership documents between the partner banks and Sakchyam commemorated the official launch of the product partnerships. “We are hopeful that the new products and partnerships put together by UK-funded Sakchyam in its first 3 months is just the beginning of a new era of several such innovations in the delivery of financial products and services in Nepal. We are glad that Louis Berger is pulling in DFID’s and other donor experiences in Africa and Asia that are revolutionizing delivery of financial services,” said Ashufta Alam.
Sakchyam is an Access to Finance for the Poor Program funded with UK aid from the British Government, and implemented by Louis Berger in collaboration with local and international institutions.