KATHMANDU, July 29: The World Bank (WB) has increased the interest rate on the loan it has been providing, with the rise in the per capita income of Nepal.
At an orientation on the foreign aid mobilization system organized by the Ministry of Finance and the Nepal Association of Financial Journalists (NAFIJ) here on Monday, Chief of International Economic Aid Coordination Division Dhaniram Sharma informed that the interest rate has been increased by 0.75 percent on the development cooperation Nepal has been receiving from the World Bank, effective from July.
Revised interest rate corridor system introduced
With the increment, the interest rate for the World Bank loan has reached 1.5 percent, Sharma shared. "The World Bank has increased the interest rate from July this year. We have been receiving such a loan on condition to repay within 40 years. The maturity period of 40 and 38 years has been reduced to 30 years now", the senior ministry official said.
The Division shared that development cooperation would be taken ahead in a way to align with the country strategies brought out by the World Bank and the Asian Development Bank.
He added that as the development partners themselves evaluate the quality and outcomes of the project under all development cooperation Nepal receives, there is no condition of project selection as per the demand.
On the occasion, Under Secretary of the MoF, Dolendra Sharma, presented a paper on the practice of foreign aid mobilization in Nepal.
