World Bank to provide Rs 17.78 billion concessional loan to Nepal

KATHMANDU, June 28: The World Bank has agreed to provide Rs 17.78 billion ($ 150 million) concessional loan to Nepal. 

The Government of Nepal and the World Bank on Sunday signed the concessional loan agreement to support Nepal’s resilient recovery from the COVID-19 pandemic, protect the most vulnerable, and support sustainable growth.

The agreement was signed on Sunday by Finance Secretary Sishir Kumar Dhungana on behalf of the Government of Nepal and the World Bank Country Director for Maldives, Nepal, and Sri Lanka, Faris Hadad-Zervos.

Finance Secretary Dhungana said that the project will help Nepal build back better and greener through reforms to the tax and customs systems, public investment management, environmental regulations and debt management. 

“The proposed budgetary support will be utilized in the physical infrastructural projects and economic recovery sectors as per the requirement and priorities of the Government of Nepal.”

Likewise, World Bank’s Country Director Faris Hadad-Zervos hoped that this project will help Nepal achieve sustained growth during and after the COVID-19 pandemic that is inclusive, job-creating and environmentally sustainable. “The World Bank is committed to support the government’s pandemic response to protect lives and stimulate economic recovery in Nepal,” he added.

Meanwhile, Country Director Faris Hadad-Zervos paid a courtesy call on Finance Minister Bishnu Prasad Poudel.

On the occasion, the World Bank’s Country Director urged stress for the control, reduction and treatment of COVID-19 patients as well as economic development. 

In response, Minister Poudel said that Nepal was on the right track in its fight against COVID-19 and for the revival of the economy while urging the Country Director to convey this message to the World Bank’s leadership.