Government of Nepal, UNDP and UNCDF sign US$ 3 million (Rs. 23.8 crore) Project for building inclusive financial sector in NepalNov 10, 2008
Government of Nepal, UNDP and UNCDF sign US$ 3 million (Rs. 23.8 crore) Project for building inclusive financial sector in Nepal
10 November 2008, Kathmandu - The Government of Nepal, the United Nations Development Programme (UNDP) and the United Nations Capital Development Fund (UNCDF) signed a US$ 3 million project entitled 'Enhancing Access to Financial Services.'
The project document was signed by Mr. Krishna Gyanwali, Joint Secretary of the Foreign Aid Coordination Division, Ministry of Finance on behalf of the Government of Nepal, Mr. Gopal Kaphle, Executive Director, Micro-finance Department of Nepal Rastra Bank and Anne-Isabelle Degryse-Blateau, Country Director for UNDP, Nepal.
This five year project, implemented by the Nepal Rastra Bank (NRB) throughout Nepal will
(i) increase access to financial services to additional 330,000 clients especially living in remote areas and yet to be brought under the ambit of microfinance services,
(ii) Financial Service Providers/Micro Finance Institutions to open up microfinance service delivery units in at least 10 remote districts and
(iii) Link at least 10,000 savings and credit groups promoted by UNDP, GOs and NGOs with Financial Service Providers/Micro Finance Institutions.
The new project seeks to increase the use of formal financial services (credit, savings and micro-insurance) from profitable financial institutions (Banks, Microfinance Institutions) by urban micro, small and medium enterprises and urban and rural low income households.
This is the first project formulated by UNDP and UNCDF in collaboration with the Nepal Rastra Bank. The project will promote coordination amongst interested donors, in particular the World Bank, in line with the Paris Declaration on Aid Effectiveness and seek to pool the support coming in micro-finance sector into one basket thereby reducing the transaction cost on aid management.
UNDP has been engaged in supporting the Government of Nepal in the area of micro-finance and micro-enterprise development since late 1990s under various rural development projects implemented by the Government of Nepal.
For more information please contact email@example.com, Development Communications Officer, UNDP Nepal 00-977-1-5523200