Finally, there is hope that wilful defaulters on large bank loans will have to face the music. "In January 2001, we had 20 parties who had taken loans of Rs 2 billion. Today, 50 parties are involved, and loans stand at Rs 29 billion," said Rajendra Khetan, director of the Khetan group. "This is ridiculous."

Many defaulters have allegedly used their political connections to avoid repaying loans in the past. Last year, Nepal Bank Limited's campaign to impound passports of defaulters was rejected by the then-royal government. The repercussions have long been felt in the financial reform sector and the development world. "Funds from the poor have been going to the rich, reversing the poverty alleviation factor. As a result the cost of doing business itself is higher now," said Sabin Shrestha, a financial sector specialist at the World Bank. "Action needs to be taken against the defaulters, but all the banks can actually do is blacklist and auction off properties," he added. However, courses of action proposed by the Nepal Rastra Bank include seizure of defaulters' passports, withdrawal of state facilities, and prohibition of property transactions.