Concessional loan worth Rs 10.47 billion received from Japan

KATHMANDU: The Government of Nepal and the Government of Japan have concluded an agreement on a concessional loan assistance amounting to Rs 10.47 billion extended by the latter 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 today.

Finance Secretary Madhu Kumar Marasini and Ambassador of Japan to Nepal KIKUTA Yutaka signed and exchanged the Notes and Records of Discussion on behalf of their respective governments.

In addition, loan agreement to this effect was also signed by Joint Secretary, International Economic Cooperation Coordination Division of the Ministry of Finance Ishwori Prasad Aryal and Chief Representative of JICA Nepal ASAKUMA Yumiko, according to the Ministry of Finance.

The objective of this assistance is to underpin 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 longer term economic growth through fostering resilience and economic stabilization.

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 the 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 signing ceremony was held remotely. The Government of Nepal has expressed its sincere appreciation to the Government of Japan for its continuous support in socioeconomic development endeavours of Nepal.