Kathmandu, May 7: The World Bank has sanctioned 80 million dollars as a loan to Nepal to strengthen the financial sector and increase access to financial services. The Executive Board of the World Bank in Washington on Tuesday approved a development policy loan equal to this amount to Nepal to strengthen the stability of the financial sector, diversify the solutions seen in the financial sector and increase access to financial services.

It aims to improve the functioning of the financial sector to support private sector-led growth with the third Finance for Growth Development Policy Credit. It is believed that the implementation of the project will strengthen the supervision of the banking and insurance sector of Nepal.

Along with this, the WB will also support Nepal’s climate agenda. In which climate-related risks and effects of the portfolio of the banking sector will be disclosed monitoring of climate risks will be increased and risk-information pricing will be determined for insurance products including climate risks. Similarly, it is said that the framework for the issuance of ‘Green Bonds’ and the integration of climate mitigation and adaptation commitments into credit guarantee products will be made.

People’s News Monitoring Service.

Source : https://www.peoplesreview.com.np/2024/05/07/wb-sanctions-80-million-dollars-worth-of-loan-to-nepal/