The World Bank will provide a concessional loan of Rs. 17.78 billion to Nepal

KATHMANDU: JUNE 27 – The Government of Nepal and the World Bank have signed a financial agreement to provide a concessional loan of US 150 million dollars i.e 17.78 billion Nepalese rupees to Nepal for the recovery from the COVID-19 epidemic and for the protection and sustainable development of the extremely poor and at risk.

The agreement was signed on behalf of the government by Finance Secretary Shishir Kumar Dhungana and World Bank National Director for Maldives, Nepal, and Sri Lanka Faris Hadad (Zervos).

Finance Secretary Dhungana said the assistance would further strengthen Nepal and support green reconstruction by further improving the tax and customs system, public investment management, environmental regulation, and debt management. He informed that the budgetary assistance would be mobilized in the field of physical infrastructure projects and economic recovery based on the needs and priorities of Nepal.

According to the Ministry of Finance and the World Bank, the first phase of development policy support for economic growth, recovery, and upliftment will support reforms aimed at protecting those at high risk and increasing business. Reform programs in this area will also pay special attention to social security, inter-government structure, access to capital of businesses, etc. This will help accelerate ongoing large-scale development projects of a nature that will create jobs, mobilize markets and support the green revival. Assistance will be received in the form of budgetary assistance.

Faris Hadad-Zervos, World Bank National Director for the Maldives, Nepal, and Sri Lanka, said the project would help achieve sustainable growth in Nepal during and after the COVID-19 epidemic and would be inclusive, employment-promoting, and environmentally sustainable.

“The World Bank is committed to supporting government programs to save lives and restore order during the Covid epidemic,” he said.

Meanwhile, Faris Hadad-Zervos, National Director of the World Bank for Maldives, Nepal, and Sri Lanka called on Deputy Prime Minister and Finance Minister Bishnu Prasad Poudel. He urged for emphasis on COVID-19 control and reduction and treatment in Nepal as well as economic development.

Deputy Prime Minister and Finance Minister Bishnu Prasad Poudel said that Nepal was on the right track for the fight against COVID-19 and for economic recovery and urged to convey the message to the World Bank leadership.