Nepal accepts USD 659 million grant from US

The Nepal government has accepted USD 659 million in grant assistance from the United States Agency for International Development (USAID), officials said on Friday.

The decision was taken at the Cabinet Meeting on April 13, said Government Spokesperson Gyanendra Bahadur Karki.

Apart from the USD 659 million grant, the Cabinet decided to accept a concessional loan of USD 150 million from the World Bank Group's International Development Association.

Officials clarified the latest USAID grant is separate from the Millennium Challenge Corporation which was ratified by the Nepali Parliament earlier in the year and generated major political debate over its supposed security concerns and anti-China posturing.

The US grant assistance to Nepal comes at a time when the country's foreign reserves have shrunk in the post-pandemic phase of the economy. The Nepal government has urged Nepalese nationals living abroad to open dollar accounts in banks in the country and make investments amidst the economic crisis.

Nepal has also tightened imports of expensive cars, gold and other luxurious goods to maintain its falling reserves.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)