KATHMANDU, JANUARY 25
Today, the Japan International Cooperation Agency (JICA) signed a loan agreement with the government of Nepal to provide Japanese ODA loan of up to 10 billion yen (equivalent to Rs 10.39 billion) for the policy loan for economic growth and resilience.
The agreement was signed with the condition of 40 years repayment and 10 years grace period with 0.01 per cent interest annually.
The exchange of notes regarding the assistance was signed between Madhu Kumar Marasini, secretary at the 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, joint secretary at the International Economic Cooperation Coordination Division (IECCD), Ministry of Finance on behalf of Nepal government and Asakuma Yumiko, chief representative of JICA Nepal Office on behalf of JICA in their respective workplaces.
The objective of the policy loan is to support the Nepal government in reforming economic and financial policies and institutions, and strengthening domestic industrial base and social security for the poor and vulnerable by providing financial support.
This policy loan will contribute to the achievement of SDGs Goals 1 (no poverty), 8 (decent work and economic growth), and 10 (reduced inequalities).
The policy loan is the first ODA Loan to be approved in six years for Nepal after Nagdhunga Tunnel Construction Project, and this is the first programme loan provided to the country by JICA. To increase the effectiveness, the policy loan is co-financing with the World Bank's $150 million Policy Lending signed on June 27, 2021. In addition, JICA has provided technical assistance to promote foreign direct investment to Nepal. This policy loan aims for synergies with the technical assistance to give momentum to improve an environment to invite foreign investment.
A version of this article appears in the print on January 26, 2022, of The Himalayan Times.
