KATHMANDU, May 4: The government on Wednesday signed an agreement with the World Bank (WB) to get a loan of USD 150 million to strengthen financial sector stability, diversify financial solutions, and increase access to financial services in Nepal.
The agreement was signed by Finance Secretary Madhu Kumar Marasini and the WB Country Director for Maldives, Nepal, and Sri Lanka, Faris Hadad-Zervos. The multilateral lending institution is providing the aforementioned amount under the ‘Finance for Growth’ Development Policy Credit.
According to the WB, the ‘Finance for Growth’ operation will support enhanced supervision of the banking sector to address financial stability risks in the context of the COVID-19 pandemic’s impacts. It will help open up capital, insurance, and disaster risk financing markets, and foster financial product innovations.
The funding will also support initiatives to increase liquidity and inclusion through access to external commercial borrowing, financial digitalization, and financial literacy for women. “This will help improve the functioning of the financial sector to support private sector-led growth,” reads a press statement issued by the WB.