Kathmandu. Former Finance Minister and Nepali Congress MP Dr. Prakash Sharan Mahat has said that bilateral loans should not be taken in the current manner. Speaking at a program organized in Kathmandu, he said this. He argued that the bilateral loans being taken in the current manner have not benefited Nepal.
He said that Nepal should not take loans at generous and expensive rates. Stating that the terms of bilateral loans are not suitable, he said that they should stop taking loans with high interest rates that have to be repaid in a short time by their own contractors. He said that Nepal should create a situation where it can take multilateral loans and invest based on its needs. He also clarified that he is not in favor of increasing internal debt.
Former Finance Minister Mahat said, ‘The way we are taking bilateral loans, it is not benefiting us. We should not take such munificent and costly loans. We should stop taking bilateral loans in this way. All the conditions of bilateral loans, their own goods, they have to retain the contractor and on top of that in the short term and high interest rate.’
‘This is not suiting us. Either we should accept the conditions as we take from the multilateral agency. Otherwise, we should decline bilateral loans. And while taking multilateral loans, Nepal should have intensive participation in our project choice in multilateral loans. National ownership. If this happens, I think that when talking about international financing, the part of the loan can be allocated efficiently. We should go for this model. I am not in favor of not increasing internal loans at all. “It can be increased,” he said.
Former Finance Minister Mahat said that unfunded rights without resources are being opened. He said that Nepal is also receiving less climate finance and said that Nepal has sufficient forest area. He said that the budget is very distorted and said that it is necessary to start rebuilding from scratch.
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