World Bank approves $80m credit for Nepal
The World Bank’s Board of Executive Directors today approved an $80m development policy credit for Nepal to strengthen the stability of the financial sector, diversify financial solutions, and increase access to financial services.
The third Finance for Growth Development Policy Credit aims to improve the functioning of the financial sector to support private sector-led growth. The operation will strengthen the supervision of the banking and insurance sectors in Nepal and foster financial product innovations in capital, insurance, and disaster risk markets. The operation will also increase financial inclusion through digitalization, enhanced credit infrastructure and improved financial literacy, with a focus on women entrepreneurs.
“This project supports Nepal’s green, resilient, and inclusive development and will help create an enabling environment for private investment to contribute to Nepal’s economic growth, particularly benefiting the poor and vulnerable,” said Faris Hadad-Zervos, World Bank Country Director for Maldives, Nepal, and Sri Lanka.
The operation also supports Nepal’s climate agenda by, for example, enhancing supervision of climate risks by requiring disclosures of climate-related risks and impacts of the banking sector portfolio; introducing risk-informed pricing for insurance products, including climate risks; establishing a framework for the issuance of green bonds; and integrating climate-related mitigation and adaptation commitments into credit guarantee products.
“This operation supports the government’s transformative financial sector reform agenda to promote private sector-led growth. The reforms in banking, insurance, and capital markets are instrumental for the sector’s resilience and the critical role it plays to enable private capital mobilization,” stated Tatsiana Kliatskova, World Bank task team leader for the project.
related news
Gold price increases by Rs 900 per tola on Monday
May 20, 2024, 11:51 a.m.
Nepse surges by 45. 69 points on Sunday
May 19, 2024, 4:36 p.m.
Gold price hits new record at Rs 140, 900 per tola
May 19, 2024, 12:24 p.m.
Monetary policy review: Risk weightage of vehicle loan reduced
May 17, 2024, 4:07 p.m.
Trade facilitation guide to export Pashmina launched
May 17, 2024, 1:31 p.m.
Gold price drops by Rs 700 per tola on Friday
May 17, 2024, 11:50 a.m.
Nepse surges by 0. 79 points on Thursday
May 16, 2024, 3:21 p.m.
What does the 16th Five-year plan look like ?
May 16, 2024, 1:54 p.m.
Comments