Kathmandu - The Public Debt Management Office (PDMO) and Agricultural Development Bank Limited (ADBL) have signed a Subsidiary Loan Agreement (SLA) under the World Bank–supported “Forests for Prosperity Project.” The agreement formalizes ADBL’s role in extending project-based loans to forest-sector enterprises across Nepal.
The SLA was signed by ADBL Chief Executive Officer Govinda Gurung in the presence of Deputy General Manager Sudip Kumar Dahal and Department Head Neeku Acharya. Officials from both institutions highlighted the importance of the agreement in strengthening access to finance for enterprises engaged in sustainable forestry.
According to ADBL, the agreement will benefit forest-based entrepreneurs by fixing the interest rate at 7 percent, expanding loan access nationwide, and setting the maximum loan ceiling at Rs 15 crore. The initiative is expected to promote investment, encourage value-chain development, and support rural economic growth.
