Financial Crisis Management Plan by NEFSCUN

The NEFSCUN Training Center has conducted training on Financial Crisis Management Plan as the 11th training today as a continuation of the ongoing virtual training during the shutdown.

Commenting on the training conducted through the Zoom application, NEFSCUN Chairman Paritosh Poudyal expressed confidence that the training would help in the financial management of the next phase of Kovid. Informing the members, organizations, and the community that the epidemic will have a phased impact, he said that preparations should be made now to be aware of the possibility of the epidemic spreading at the community level. Stating that there is a need for policy address from the state on the issue of financial facilitation, Chairman Poudyal informed that discussions are underway regarding the working procedure of the Credit Information Center.

Welcoming the participants, Damodar Adhikari, General Secretary of NEFSCUN and Coordinator of Training Education Sub-Committee, said that today’s training would be useful for all. He claimed that this would help the cooperatives seeking guidance in financial management. Stating that NEFSCUN Training Center has organized a continuous virtual training program with the objective of providing necessary assistance to the member organizations in the current difficult situation, Secretary-General Adhikari said that the training would be continued in the future as well.

Facilitating the program, Keshav Prasad Pokhrel, Retired Treasurer of NEFSCUN, provided intensive training on the definition of the covid financial crisis, liquidity crisis, demand and supply of liquidity, liquidity management strategy, the impact of differential rate, possible solutions to a liquidity crisis that may arise after closure and its solutions. Stating that there was a sluggish financial crisis of trade, employment and consumption, he informed that all the cooperatives should make a crisis management plan for its management. He said that a new situation has been created instead of the traditional plan of yesterday and a strategy should be formulated to address it. Stating that the situation should be assessed, analyzed and identified for crisis management, Pokharel said that pre-crisis, crisis and post-crisis plans should be prepared.

Instructor Pokharel said that the members should be made aware of the situation and the financial crisis it has created. Otherwise, interest and dividends should be expected as in the past. He suggested that the cooperatives should reduce the debt, invest in the productive sector and reduce the expenditure on non-performing assets. During the training, long-term assets ratio, short-term financial investment, current assets, share capital ratio and other issues were highlighted.

The program was concluded by Damodar Adhikari, General Secretary of NEFSCUN and Coordinator of Training Education Sub-Committee, and was conducted by Ganesh Prasad Timilsina, Principal of the Training Center.