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

Key Points

• The Asian Development Bank will provide Nepal with a $100 million concessional loan to support fiscal federalism implementation.
• The loan will fund improvements in public financial management and budgetary systems across all three levels of government.
• The loan agreement features a 24-year repayment period with an eight-year grace period and a 1% interest rate until 2034.
• The program aims to strengthen fiscal governance, improve procurement, promote fiscal discipline, and empower local governments for inclusive development.