World Bank Provides $150 Million Loan for Financial Sector Consolidation in Nepal « Khabarhub
World Bank provides $150 million loan for financial sector consolidation in Nepal
Finance Secretary Madhu Kumar Marasini (right) and World Bank Country Director for the Maldives, Nepal and Sri Lanka Faris Hadad-Zervos at the signing ceremony of the agreement. (Photo: RSS)
KATHMANDU: The World Bank will grant a loan of 150 million dollars (approximately 18.36 billion rupees) to strengthen the financial sector of Nepal. The Finance for Growth and Development Policy Credit loan is provided to help diversify financial solutions and increase access to financial services in Nepal.
A bilateral agreement to that end was signed here on Wednesday by Finance Secretary Madhu Kumar Marasini and World Bank Country Director for the Maldives, Nepal and Sri Lanka Faris Hadad-Zervos, on behalf of the World Bank.
Speaking on the occasion, Finance Secretary Marasini said that the country’s main priorities at present are guided by the objective of achieving sustainable and inclusive growth, as reflected in the Financial Sector Development Strategy. (2078-2082).
The strategy focuses on addressing the risks of COVID-19 and climate change, as well as scaling up digital payments and financial inclusion,” he said.
The support is expected to help banking sector supervision address financial stability risks in the face of the COVID-19 outbreak. It will also help open financial markets for capital, insurance and disaster risk and promote the latest financial services.
It will also support initiatives to increase liquidity and inclusiveness of the economy through access to external commercial loans, financial digitization and financial literacy for women.
The project will also contribute to improving the functioning of the financial sector.
The project will support Nepal’s inclusive green growth and launch a new climate agenda by supporting policies to increase climate finance in various sectors.
World Bank Country Director Zervos expressed confidence that the project will further contribute to government policies and priorities aimed at mitigating the adverse effects of the epidemic by supporting financial sector reforms with a broader resilience agenda climate on the financial market. (RSS)