WB approves 100 million US dollars credit to Nepal; AIIB president hints at possibility of investment in infrastructure projects

Kathmandu / March 3: The World Bank has approved a 100 million US dollars credit to help Nepal accelerate its medium term reform programmes for the financial sector and to reduce the vulnerability of the banking sector and increase its transparency.

In its medium-term program for the financial sector Nepal has focused on reforms designed to place the financial sector on a sound foundation for the future. Building on past gains, the third financial sector stability credit will support four main policy areas: enhancing financial sector development; restructuring and consolidating the financial system; strengthening the legal and regulatory framework for crisis management, banking and insurance supervision and payment systems; and enhancing the governance and transparency of the banking sector.

Despite the rapid growth of the banking sector, two in every three Nepalis still have little or no access to formal financial services.

“Ensuring the stability of the financial system is crucial to expanding financial inclusion,” said Takuya Kamata, World Bank Country Manager for Nepal in a press release issued by the WB on Friday. “Participation in the financial system helps people start and expand businesses, manage risks and weather shocks. It also promotes social protection and women’s empowerment” he said.

The credit is to support a sustained focus on financial sector stability to endure broader economic recovery in the aftermath of the 2015 earthquakes and trade disruption.
AIIB president hints at possibility of investment in infrastructure projects

Meanwhile, Asian Infrastructure Investment Bank (AIIB) president Jin Liqun has hinted the possibility of ample investment in the infrastructure building projects if appropriate project proposals were received from the private sector for the same.

The AIIB President, who is presently in the capital in course of taking part in the Nepal Investment Summit 2017, during his meeting with the officials of the Confederation of Nepalese Industries (CNI) and the Council of Think Tank, CNI said the Bank could invest in such projects without government guarantee if suitable proposals were received towards that end.

Far-sighted vision and commitment of political leadership were a must to develop mega projects and projects of strategic importance which could bring socio-economic transformation in a country and political stability was the pre-condition to implement such projects, he said, adding that he was encouraged by the latest atmosphere being created in Nepal.

“Statements that leaders of major political parties here delivered to the Investment Summit prove that political leadership is committed to the socio-economic transformation of Nepal,” Mr Jin said, expressing his hope that the election going to be held here in near future would help attain political stability. He hoped that development endeavours would get momentum here and the Bank was committed to invest for so.

Council’s Chair Hari Bhakta Sharma shared that the government has chalked out various programmes and partnering with the public and private sectors to upgrade the country from the status of a least developed country to the developing one by 2030.

He said that they expect AIIB to consider investment on mega development projects in the country including the Nijgadh International Airport and East-West Electric Railway.

Similarly, CNI’s Council of Thinktank Coordinator Shambhuram Simkhada suggested the AIIB to adopt the strategy of expanding investment on developing the basic infrastructures in the least developed countries like Nepal. RSS