Kathmandu, June 9:

Asian Development Bank (ADB) and the ministry of finance (MoF) today signed a loan agreement for a $10 million in a bid to promote socio-economic empowerment of the poor, rural women of Nepal.

According to ADB, agreement to this effect was signed at the MoF by Bhoj Raj Ghimire, secretary of MoF on behalf of the Nepal government and Sultan H Rahman, country director of ADB-Nepal Resident Mission, on behalf of ADB.

The loan is aimed at reducing poverty through empowering poor rural women and disadvantages groups, such as ethnic and low-caste women in 15 poorest and most disadvantaged districts in the mid-western and far-western regions and central region.

The loan is going to be used under the project Gender Equality and Empowerment of Women.

The project comprises of four components covering economic, legal, socio-cultural, and institutional empowerment of disadvantaged rural women.

The total cost of the project is about $15.5 million, of which the government is providing $3.4 million and the households and communities benefiting will contribute $2.1 million.

ADB will provide a loan of $0 million which accounts for 65 per cent of the project cost. The loan comes from its concessional Asian Development Fund and has a 32 year term, including a grace period of eight years.