KATHMANDU: Machhapuchchhre Bank Ltd (MBL) has entered into a loan agreement of $10 million with Mashreq Bank, Dubai amidst a signing ceremony held in the presence of Chief Executive Officer of MBL Suman Sharma and Chief Country Representative of Mashreq Bank Hema Adhikari.

As envisaged in the Monetary Policy of 2019-2020, Nepal Rastra Bank has permitted domestic commercial banks to borrow loans up to 100 per cent of the tier capital in foreign currency from licensed pension funds, hedge funds and other financial institutions in a bid to ease pressure on the shrinking foreign currency reserves, to address liquidity crunch, and increase credit in productive and priority sectors as stipulated by the central bank.

This initiative will ensure much needed capital for infrastructure development including other priority sectors to supplement the economic growth envisioned by the government, the bank said in a statement.