The Government of Japan has decided to extend loan assistance of up to ten billion Japanese Yen (¥10,000,000,000), approximately NRs. 10.4 billion, to the Government of Nepal as a Policy Loan for Economic Growth and Resilience.

Kikuta Yutaka, Ambassador of Japan to Nepal, and Madhu Kumar Marasini, Secretary of the Ministry of Finance signed notes to this effect today. Another set of Loan Agreements for implementing the project was signed by Ms. Asakuma Yumiko, Chief Representative of JICA Nepal, and Ishwori Prasad Aryal, Joint Secretary, the International Economic Cooperation and Coordination Division of the Ministry of Finance.

This Loan aims for supporting the Government of Nepal in its reform program through co-financing with the Nepal Programmatic Fiscal Policy for Growth, Recovery and Resilience Development Policy Financing by the International Development Association (IDA).

The COVID-19 pandemic has badly affected the hard-earned development gains of Nepal. The outbreak has hit almost every sector of the Nepali economy. In particular, the entire service industries, including the tourism, aviation and hospitality sectors, have been hit hard by the outbreak. On the occasion of signing the notes, Ambassador Kikuta stated that “the Government of Japan has provided multifaceted support to Nepal to prevent and control the COVID-19 pandemic. In particular, Japan has provided vaccines, medical equipment and training in this field, which will greatly contribute to the health care system even after the pandemic. Our next decision is to provide financial support for the economic stabilization and development of Nepal as a whole. I hope that this support will be effectively utilized to realize post-COVID-19 economic recovery and social resilience.”

The Embassy of Japan is committed to extending all possible assistance to Nepal in its endeavor for nation-building and strengthening the friendly relationship between the peoples of Japan and Nepal.