Govt receives concessional loan worth Rs 10.47bn from Japan Business 360

Govt receives concessional loan worth Rs 10.47bn from Japan

Finance Secretary Madhu Kumar Marasini, on behalf of the Government of Nepal, signs and exchanges notes and records of discussion with Japanese Ambassador to Nepal, Kikuta Yutaka, at the Ministry of Finance, Kathmandu, on Tuesday, January 25, 2022. Photo: MOF Nepal/Twitter

KATHMANDU: The Government of Nepal and the Government of Japan have concluded an agreement on concessional loan assistance amounting to Rs 10.47 billion extended by the latter for the promotion of economic growth and to support the development efforts undertaken by the Government of Nepal. The agreement to this effect was signed and exchanged today.

Finance Secretary Madhu Kumar Marasini and Ambassador of Japan to Nepal Kikuta Yutaka signed and exchanged the notes and records of discussion on behalf of their respective governments. In addition, the loan agreement to this effect was also signed by Joint Secretary at International Economic Cooperation Coordination Division of the Ministry of Finance, Ishwori Prasad Aryal and Chief Representative of JICA Nepal, Yumiko Asakuma, according to the Ministry of Finance.

The objective of this assistance is to underpin the government’s effort in reforming economic and financial policies and institutions as well as strengthening domestic industrial bases and protecting the poor and vulnerable people. It also aims at contributing to the country’s long term economic growth through fostering resilience and economic stabilization.

The proceeds of loan will be utilised in the form of co-financing with the World Bank’s support for carrying out the activities of economic growth, recovery and resilience. The assistance is budgetary support in nature and can be used to cover the budgetary expenditures of the government of Nepal.

It entails 0.01% interest rate per annum and the repayment period expands up to 40 years, including a grace period of 10 years.

The signing ceremony was held remotely. The government has expressed its sincere appreciation to the Japanese government for its continuous support in the socioeconomic development endeavours of Nepal.

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