Kathmandu, January 26
The Japan International Cooperation Agency (JICA) signed a loan agreement with the government of Nepal in Kathmandu on Tuesday to provide a Japanese ODA loan of up to JPY 10 billion (equivalent to Rs 10.39 billion) for the Policy Loan for Economic Growth and Resilience.
The Japanese agency says the fund will be utilised to build resilient societies.
The agreement was signed with the condition of 40 years’ repayment and a 10 years’ grace period with 0.01% interest annually.
The exchange of notes regarding the deal was signed between Finance Secretary Madhu Kumar Marasini and Japanese Ambassador Kikuta Yutaka. Similarly, the loan agreement was signed between Finance Ministry’s joint secretary Iswori Prasad Aryal and JICA Nepal chief Asakuma Yumiko.
“The objective of the policy loan is to support the government of Nepal in reforming economic and financial policies and institutions, and strengthening domestic industrial base and social security for the poor and vulnerable by providing financial support,” JICA says in its statement, “This policy loan will contribute to the achievement of SDGs 1 (No poverty), 8 (Decent work and economic growth), and 10 (Reduced inequalities).”
This policy loan is the first ODA Loan to be approved in six years for Nepal after Nagdhunga Tunnel Construction Project, and this is the first programme loan provided to the country by JICA.