KATHMANDU, 25 JANUARY
Today, the Japan International Cooperation Agency (JICA) signed a loan agreement with the Government of Nepal to provide a Japanese ODA loan of up to 10 billion yen (equivalent to 10.39 billion rupees) for the strategic loan for economic growth and resilience.
The agreement was signed with the condition of a repayment of 40 years and a grace period of 10 years with interest of 0.01% per annum.
The exchange of notes regarding the assistance was signed between Madhu Kumar Marasini, Secretary, Ministry of Finance on behalf of the Government of Nepal and Kikuta Yutaka, Ambassador of Japan to Nepal on behalf of the Government of Japan in their respective offices. Similarly, the loan agreement was signed between Iswori Prasad Aryal, Assistant Secretary, International Economic Cooperation Coordination Division (IECCD), Ministry of Finance on behalf of the Government of Nepal and Asakuma Yumiko, Chief Representative of the Office of JICA in Nepal on behalf of JICA in their respective countries. work places.
The objective of the policy loan is to help the Nepalese government reform economic and financial policies and institutions, and strengthen the national industrial base and social security of the poor and vulnerable by providing them with financial support.
This strategic loan will contribute to the achievement of Goals 1 (no poverty), 8 (decent work and economic growth) and 10 (reduced inequalities) of the SDGs.
The strategic loan is the first ODA loan to be approved for Nepal in six years after the Nagdhunga tunnel construction project, and it is the first program loan extended to the country by JICA. To increase efficiency, the strategic loan is co-financed with the World Bank’s $150 million strategic loan signed on June 27, 2021. In addition, JICA provided technical assistance to promote foreign direct investment in Nepal. This political loan seeks synergies with technical assistance to give impetus to the improvement of an environment conducive to foreign investment.
A version of this article appears in the January 26, 2022 printing of The Himalayan Times.