KATHMANDU:- The concessionary loan agreement has been signed between the government of Nepal and the Asian Development Bank (ADB) for Sub-Program 2 of the Public Financial Management Strengthening and Decentralized Service Delivery Empowerment Program.

According to the agreement signed at a ceremony held at the Ministry of Finance today, Wednesday, the Asian Development Bank will provide policy-based loan assistance worth US$100 million (approximately Rs. 13.3 billion) to the Government of Nepal for the program.

The loan will have a grace period of 8 years and a repayment period of 24 years. The loan will have a grace period until February 1, 2034. The interest rate on this loan will be 1 percent until the grace period and then 1.5 percent thereafter.

The loan agreement was signed by Finance Secretary Dr Ghanashyam Upadhyaya on behalf of the government of Nepal and Country Director of the Nepal Resident Mission, Arnaud Cauchois, on behalf of the Asian Development Bank.

Following the agreement, Country Director Arnaud Cauchois and Secretary Upadhyaya showed commitment to further strengthen and continue the collaboration between the Nepal government and ADB bank.

This program aims to strengthen service delivery, maintain fiscal discipline, and utilize public resources effectively, improve budget formulation and expenditure management, further strengthen local governments, and make overall development outcomes result-oriented.

Co-spokesperson of the Minsitry Joint Secretary Tanka Prasad Pandaya said that there was a presence of the high officials of the Finance Minsitry and ADB.