World Bank increases interest rate of loan to Nepal by 0.75 percent

Kathmandu, July 29: The World Bank (WB) has increased interest rate of the loan it has been providing with the rise in the per capita income of Nepal.

At an orientation on foreign aid mobilization system organized by the Ministry of Finance and Nepal Association of Financial Journalists (NAFIJ), Chief of International Economic Aid Coordination Division Dhaniram Sharma informed that interest rate has been increased by 0.75 percent on the development cooperation Nepal has been receiving from the World Bank, effective from July.

With the increment, the interest rate for the World Bank loan has reached 1.5 percent, Sharma shared.

“The World Bank has increased the interest rate from this July. We have been receiving such loan on condition to repay within 40 years. The maturity period of 40 and 38 years has been reduced to 30 years now”, the senior ministry official said.

The Division shared that development cooperation would be taken ahead in a way to align with the country strategies brought out by the World bank and the Asian Development Bank.

He added as the development partners themselves evaluate the quality and outcomes of the project under all development cooperation Nepal receives, there is no condition of project selection as per the demand.

On the occasion, Under Secretary of the MoF, Dolendra Sharma presented a paper on the practice of foreign aid mobilization in Nepal. #nepal #worldbank #imf

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