The Asian Development Bank (ADB) has agreed to provide Nepal with a loan of NPR 4.3 billion (USD 60.4 million equivalent) and a grant of NPR 870 million (USD 12.1 million equivalent) in an effort to increase access for credit to the rural poor and to women. The ADB Board of Directors approved the funding to be paid from its Asian Development Fund to finance the Nepalese Rural Finance Sector Development Cluster Program and other similar programs.
The Rural Finance Sector Development Cluster Program is a development program executed by Nepal’s Ministry of Finance to provide financial services to and alleviate poverty of the rural poor in Nepal. The cluster program is targeting an increase in credit access for the rural poor from 1 million accounts in 2008 to 1.17 million by 2012 and an increase in women’s access to finance from 200,000 accounts to 283,000 during the same period.
By Jennifer Shevock, Research Associate
About Asian Development Bank:
Established in 1966 and headquartered in Manila, the Philippines, the Asian Development Bank (ADB) is a regional development bank that consists of sixty-seven members, of which forty-eight are based in the region and nineteen are based outside the region. The ADB has three strategic agendas: to foster inclusive growth, to facilitate regional integration and to ensure environmentally sustainable growth. To accomplish these objectives, the ADB uses loans, technical assistance programs, grants and direct assistance in the form of equity investments, guarantees and credit to private companies in member countries.
Sources and Additional Resources:
“ADB pledges 72 mln USD assistance to Nepal” June 18, 2010. https://sites.stockpoint.com/dain/newspaper.asp?site=D&Mode=Rates&Story=20100618/169h4919.xml
MICROCAPITAL UNIVERSE PROFILE ON ASIAN DEVELOPMENT BANK: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Asian+Development+Bank+(ADB)
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