Kathmandu. KATHMANDU: The Government of Nepal and the Asian Development Bank (ADB) have signed a loan agreement for the implementation of the Strengthening Public Finance Management and Development Service Delivery Program (SBG) Subprogram-2 in the capital today.
The Asian Development Bank (ADB) has provided policy-based loan of USD 100 million to the Government of Nepal for the programme. The loan will have a grace period of 8 years and the repayment period will be 24 years. The interest rate will be 1% for the grace period of the loan till February 1, 2034 and thereafter it will be 1.5%.
Finance Secretary Dr. The agreement was signed by ADB’s Country Director and ADB’s Country Director Aron Kushwa. At the beginning of the ceremony, Joint Secretary Dr. Speaking on the occasion, Dr. Dhaniram Sharma said that the objective of the programme is to improve the expenditure and financial management of Nepal as well as the inter-governmental resource management. After signing the agreement, Nepal Country Director Anau Kushwa and Finance Secretary Dr. Speaking on the occasion, Prof. Ghanashyam Upadhyay pledged to take ahead the collaboration in a continuous and more effective manner.
The program will contribute to strengthening service delivery through the effective utilization of public resources for public financial management in Nepal. It is expected to maintain fiscal discipline, improve budgeting and expenditure management, further empower local governments, and improve overall development outcomes.
The event was attended by senior officials from the Ministry of Finance and Asian Development Bank.
