KATHMANDU, Feb 3: The World Bank’s Executive Board has approved a project worth USD 95 million (approximately Rs 13.87 billion) for Nepal, aimed at expanding access to employment-oriented finance and strengthening the country’s financial sector.
According to the World Bank, the project will help improve financial access for more than 100,000 small and medium enterprises (SMEs) across the country. It seeks to strengthen Nepal’s Deposit and Credit Guarantee Fund by reducing financial risks, enhancing financial sustainability, and supporting women-led businesses.
World Bank Country Director for Maldives, Nepal and Sri Lanka, David Sislen, said the project will expand financial inclusion by easing access to finance and reducing barriers to business operations.
Post-merger NCC Bank starts operation
“The project will help SMEs integrate into regional and global value chains, contributing to job creation and boosting private sector-led growth,” Sislen said.
The Sustainable and Inclusive Finance Project prioritises improving financial access for underserved and marginalised groups. It will also invest in strengthening the technical and institutional capacity of the Credit Information Bureau, including expanding data coverage, integrating alternative data sources, and enhancing data security and privacy.
The World Bank noted that limited collateral and restricted access to credit have constrained SMEs’ access to finance in Nepal. It also pointed out that credit risk assessment remains inadequate in the country.
Senior Financial Sector Specialist for South Asia and Task Team Leader of the project, Sabinraj Shrestha, said the project will support the upgrade of the Deposit and Credit Guarantee Fund’s information systems, improve claim settlement processes, and introduce risk-based pricing mechanisms.
