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January 26: The Government of Nepal has signed an agreement with Japan for a concessional loan of Rs 10.39 billion. Japan has agreed to extend the loan for the promotion of economic growth and to support the development efforts undertaken by the Government of Nepal. The agreement to this effect was signed and exchanged on Tuesday, January 25.
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The objective of this assistance is to strengthen the government’s effort in reforming economic and financial policies and institutions as well as strengthening domestic industrial bases and to protect the poor and vulnerable people. It also aims at contributing to the country’s long-term economic growth through fostering resilience and economic stabilization.
According to the ministry, the proceeds of loan will be utilized in the form of co-financing with the World Bank’s support for carrying out the activities of economic growth, recovery and resilience. The assistance is budgetary support in nature and can be used to cover the budgetary expenditures of the Government of Nepal. It entails 0.01 percent interest rate per annum and the repayment period expands up to 40 years, including a grace period for 10 years.
The Government of Nepal has expressed its sincere appreciation to the Government of Japan for its continuous support in socioeconomic development endeavours of Nepal. -- RSS
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