The Government of Nepal and the Asian Development Bank (ADB) have signed a concessional loan agreement. The agreement was signed on Wednesday at the Ministry of Finance for Subprogram II of the Strengthening Public Financial Management and Transfer Service Delivery Program.
Under the program, the Asian Development Bank has provided the Government of Nepal with policy-based loan assistance amounting to USD 100 million.
The loan carries a repayment period of 24 years, including a grace period of eight years. The grace period will remain in effect until February 1, 2034. During the grace period, the interest rate will be 1 percent, which will increase to 1.5 percent thereafter.
The loan agreement was signed by Finance Secretary Dr. Ghanshyam Upadhyay on behalf of the Government of Nepal and by Ano Kushwa, Director of the ADB Nepal Resident Mission, on behalf of the Asian Development Bank.
The ceremony began with remarks by Joint Secretary Dr. Dhaniram Sharma. Following the signing, Director Ano Kushwa and Finance Secretary Dr. Ghanshyam Upadhyay addressed the event, expressing their commitment to continuing and further strengthening cooperation in a more effective manner.
This program is expected to contribute to strengthening service delivery through the effective use of public resources in Nepal’s public financial management system. It aims to maintain fiscal discipline, improve budget formulation and expenditure management, further empower local governments, and make overall development outcomes more results-oriented.
