OPEC Fund Signs US$25 Million Loan Agreement with Global IME Bank to Boost MSMEs and Climate Finance in Nepal
The OPEC Fund for International Development has signed a US$25 million loan agreement with Global IME Bank Limited to support micro, small, and medium enterprises (MSMEs) in Nepal, particularly women-owned enterprises, and to finance climate-smart projects.
MSMEs constitute 95% of Nepal's registered businesses and are crucial for employment, yet face a significant financing gap estimated at US$3.6 billion. The loan aims to address these gaps and bolster Nepal's resilience to climate change. The partnership between the OPEC Fund and Global IME Bank will enhance access to finance for MSMEs and promote inclusive economic growth.
It will also strengthen Nepal's climate finance portfolio, supporting initiatives like clean energy and climate-resilient agriculture. Global IME Bank plans to empower women economically through accessible financing, contributing to gender equality and sustainability goals.
Nepal ranked 94th globally in CO2 emissions with a high vulnerability to climate change, will benefit from increased support for climate resilience projects such as clean transportation and solar energy. The OPEC Fund's ongoing commitment to sustainable development in Nepal includes investments in banking, energy, agriculture, transportation, and education, reinforcing its partnership with the country towards a greener and more inclusive future.
