World Bank providing concessional loan of $ 150 million to support resilient recovery from COVID-19

Kathmandu / June 27: The government on Sunday inked an agreement with the World Bank (WB) to receive a concessional loan worth US $ 150 million for resilient recovery from the COVID-19 pandemic, protect the most vulnerable, and support sustainable growth.

Finance Secretary Sishir Kumar Dhungana and the WB Country Director for the Maldives, Nepal, and Sri Lanka, Faris Hadad-Zervos signed an agreement in this regard. Dhungana said the project will help Nepal build back better and greener through reforms to the tax and customs systems, public investment management, environmental regulations and debt management. “The proposed budgetary support will be utilized in the physical infrastructural projects and economic recovery sectors as per the requirement and priorities of the Government of Nepal,” he said.

According to the WB, the financing will be provided to the Government of Nepal through budgetary support. It is the first credit in its type targeted for Fiscal Policy for Growth, Recovery and Resilience Development Policy that will support reforms aimed at protecting the most vulnerable and supporting business growth.

Reforms in this area focus on social protection, the intergovernmental framework, and supporting access to capital for firms. It will help speed up the ongoing large development projects to create jobs, accelerate markets, and support green recovery.

“This project will help the country achieve sustained growth during and after the COVID-19 pandemic that is inclusive, job-creating and environmentally sustainable,” reads a press release quoting the WB Country Director.