Kathmandu-A nationwide protest against loan sharking that had continued for the past nine days has been suspended after the government and representatives of victims reached a nine point agreement on Friday.

The "Justice March", launched on July 10 from Tritiyagachhi in Janakpur, reached Nijgadh in Bara before the government agreed on July 16 to form a formal negotiation team. The agreement followed talks between Home Minister Sudan Gurung and representatives of the victims.

The victims' delegation arrived in Kathmandu on Thursday, where intensive negotiations were held with a government team led by Pushkar Sapkota, Secretary at the Office of the Prime Minister and Council of Ministers. The agreement was signed by Secretary Sapkota on behalf of the government and Awadhesh Kushwaha on behalf of the victims.

Under the agreement, the government will table a proposal at the next Cabinet meeting to formally recognise loan sharking as an economic crime and declare its complete eradication as a national objective. The proposal also seeks to invalidate fraudulent loan documents, mortgage deeds, coercive property transfer documents and forced cheques.

The Ministry of Home Affairs will prepare a draft bill within three months to introduce a dedicated law on controlling loan sharking. The proposed legislation will provide for a separate judicial mechanism to hear such cases, ensure the return of victims' property and guarantee appropriate compensation.

The agreement also requires ward offices to verify the legal source of funds and proof of bank transactions before certifying private lending agreements. Strict legal action will be taken against individuals who use proceeds of crime or corruption for loan sharking.

The proposed law will criminalise practices including preparing loan documents for amounts higher than the actual loan, capitalising interest into the principal, refusing to issue receipts to borrowers, charging excessive interest, intimidation, physical and psychological abuse, forcing borrowers to sign blank cheques or documents, and unlawfully seizing property.

Authorities will conduct forensic examinations of disputed loan documents and investigate the source of assets held by suspected loan sharks. Cases involving money laundering will be investigated under existing criminal procedures. The government also agreed to remove legal obstacles in court cases where necessary to ensure justice for victims.

A high level coordination committee, led by the Secretary at the Office of the Prime Minister and Council of Ministers, will be established along with a dedicated help desk to address victims' complaints. At the district level, facilitation committees led by Assistant Chief District Officers, with three representatives of the victims, will be formed to resolve all complaints within six months. Their work will be monitored by committees headed by the Chief District Officers.

The agreement also commits the government to introducing financial assistance and relief packages through the annual budget to help victims avoid falling back into loan sharking. Following the agreement, the victims announced the suspension of all protest programmes.