June 2, 2020 | Investopaper
The Asian Development Bank (ADB) has provided budget assistance to Nepal for the prevention of Corona Virus (Covid-19) and its impact on the economy. An agreement to provide US $250 million (about Rs 30 billion) in concessional loans was signed on Monday.
The agreement was signed by Finance Secretary Shishir Kumar Dhungana on behalf of the Government of Nepal and Asian Development Bank (ADB) Director for Nepal Mukhtor Khamudakhnov. The agreement was signed in the presence of Finance Minister Yubaraj Khatiwada, according to a statement issued by the Finance Ministry.
Finance Minister Dr. Yuvaraj Khatiwada said that this was the first time that a single organization had provided such a large amount of assistance in such a short period of time. Replying to a question of the lawmakers in the House of Representatives regarding the Appropriation Bill, he said that the World Bank, European Investment Bank and others have pledged additional assistance.
Speaking at the signing ceremony, Finance Secretary Dhungana said the government would spend the ADB loan on corona prevention and public health. He expressed confidence that the amount would also help the government in social security and job creation schemes.
ADB Director for Nepal, Mukhtor Khamudakhnov, pledged to continue supporting the Government of Nepal’s plan to control the epidemic. The concessional loan amount is also planned to be spent on corona testing laboratory, quarantine management and upgrading of treatment services, the ministry said. The statement said that the assistance would be spent on economic and social activities to reduce the impact of the epidemic on the poor and at-risk groups.