WB to provide $100 million in loan assistance for financial sector stability policy reform
April 12, 2017 11:09 AM NPT
Bijay Gajmer/Republica World Bank Group Country Director to Nepal Qumiao Fan (left) and Finance Secretary Shanta Raj Subedi shake hands after signing an agreement for a US$ 100-million-loan assistance amid a ceremony at the Ministry of Finance in Singha Durbar, Kathmandu, on Tuesday.
KATHMANDU, April 11: World Bank has agreed to provide a US$ 100-million (approximately Rs 10.70 billion)-loan assistance for the financial sector stability development policy credit III.
The third series of such development credit facility from the bank aims to help Nepal’s step up its medium-term reform programs for the stability of the financial sector, to reduce vulnerability of the banking system, and to increase its transparency.
Finance Secretary Shanta Raj Subedi and World Bank Group Country Director to Nepal Qumiao Fan signed the agreement at an event at the Ministry of Finance (MoF) on Tuesday.
The four areas that the proposed credit will support are -- enhancing financial sector development, restructuring and consolidating the financial system, strengthening the legal and regulatory framework, and enhancing the governance and transparency of the banking sector.
“This assistance will be in the form of budgetary support and received by the national treasury in a single tranche. The government can use the assistance in accordance to its needs and priority areas,” MoF said in a statement. Nepal has already used such credit facilities before during the first and second phases -- the first received in June 2013 and the second in June 2015.
“The Government of Nepal has expressed sincere appreciation to the World Bank for extending this policy-based credit for Financial Sector Stability and also for its continued support in the socio-economic development of Nepal,” the MoF said.