Himal Press 
KATHMANDU: The World Bank is providing Nepal with $80 million development policy credit to strengthen the stability of the financial sector, diversify financial solutions and increase access to financial services.
The Board of Executive Directors of the World Bank approved the credit on Monday, according to a World Bank statement.
“The third Finance for Growth Development Policy Credit aims to improve the functioning of the financial sector to support private sector-led growth. The operation will strengthen the supervision of the banking and insurance sectors in Nepal and foster financial product innovations in capital, insurance, and disaster risk markets,” the World Bank said in the statement. “The operation will also increase financial inclusion through digitalization, enhanced credit infrastructure and improved financial literacy, with a focus on women entrepreneurs.”
Faris Hadad-Zervos, the World Bank Country Director for Maldives, Nepal and Sri Lanka, said the project supports Nepal’s green, resilient and inclusive development, and will help create an enabling environment for private investment to contribute to Nepal’s economic growth.
It will also support Nepal’s climate agenda by enhancing supervision of climate risks by requiring disclosures of climate-related risks and impacts of the banking sector portfolio; introducing risk-informed pricing for insurance products, including climate risks; establishing a framework for the issuance of green bonds; and integrating climate-related mitigation and adaptation commitments into credit guarantee products, according to the World Bank.
