The OPEC Fund is set to provide a US $25 million in loan to the Global IME Bank.
The agreement in this regard was signed by OPEC Fund Director General Dr. Abdulhamid Alkhalifa and Global IME Bank Chief Executive Officer Ratna Raj Bajracharya.
According to the bank, this loan will be mobilized to increase financial access to micro, small and medium enterprises, reduce the effects of climate change and increase the capacity of businesses run by women.
The number of micro, small and medium enterprises is more than 95 percent of the total registered businesses in Nepal and it has created more than 45 percent of employment. Despite this, micro, small and medium enterprises are facing a huge lack of investment.
"We are pleased to partner with the Global IME Bank to strengthen micro, small and medium enterprises and climate change mitigation projects in Nepal," Al Khalifa said, "These sectors are very important for sustainable economic growth and resilience to climate change." This loan of ours will promote inclusive development by increasing access to finance in various areas facing lack of investment.
Bajracharya, the CEO of the bank, said that this loan agreement will help achieve the sustainable development goals and fill the lack of resources in the sector through climate and gender finance.
"Also, addressing the lack of resources in the green energy sector in Nepal, it will help empower women economically," he said.
He said that this cooperation will help reduce the effects of climate change by strengthening micro, small and medium enterprises which are important for Nepal's economy.
