GoN requests China to convert loans into grants

Aug 23, Kathmandu: The Government of Nepal (GoN) on Thursday requested the Chinese government to convert the loan taken during the construction of Pokhara Regional International Airport into a grant.

The Ministry of Finance sent a communiqué to the Chinese side making such a request. Chief of International Financial Aid Coordination Division under the Ministry of Finance, Dhaniram Sharma, handed over the letter to the Vice Chair of China International Development Cooperation Agency, Yang Weigun, at a program held at the Ministry of Finance on Thursday.

On the occasion, Deputy Prime Minister and Minister of Finance Bishnu Prasad Paudel requested to convert the loan into a grant, considering the condition of Nepal’s economy and also China being a good neighbour of Nepal. Finance Secretary Dr Ram Prasad Ghimire, Chinese Ambassador to Nepal Chen Song and others dignitaries were present on the occasion.

At the program, four separate letters of cooperation were signed regarding the construction of an 8.2 km road from Kalanki to Bashundhara, Maharajgunj of Kathmandu Ring Road, upgrading of Hilsa-Simikot road section to two lanes, construction of the ICP and ICD at Korala transit point in Mustang and feasibility study of maintenance and improvement of Araniko highway and landslide control works.

The agreement was signed by Finance Secretary Dr Ghimire on behalf of the government and by Yang Weigun, Vice Chair of China International Development Cooperation Agency on behalf of China.