ADB’s concessional loan support for implementing fiscal federalism in Nepal

Summary

The Asian Development Bank will provide Nepal a USD 100 million concessional loan to support fiscal federalism implementation, enhance public financial management, and improve budget systems across all government levels.

Key Points
  • Asian Development Bank is providing Nepal USD 100 million in concessional loans for fiscal federalism implementation.
  • The loan is part of Subprogram–2 of ADB’s Strengthening Public Financial Management and Devolved Service Delivery Programme.
  • Loan terms include a 24-year repayment period with an 8-year grace period and low interest rates.
  • The programme aims to improve budget processes, public service delivery, procurement systems, fiscal discipline, and empower local governments.
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