The Nation · Public debt · Multilateral
World Bank (IDA)
विश्व बैंक (IDA)
Nepal's largest external creditor. Deeply concessional — almost a grant in present-value terms.
Outstanding
USD 2.90B
as of FY 2024/25
Share of ext. debt
29%
cited
Currency
SDR
Major loans
4
cited
How it works
The World Bank's International Development Association (IDA) holds the largest single share of Nepal's external debt. The terms are exceptionally soft: a 0.75-1.25% service charge in place of interest, 38-year maturity, and a 6-year grace period. In present-value terms IDA debt has a high grant element, which is why Nepal's external debt-service ratio remains manageable despite a high nominal stock.
The short version
The World Bank lends Nepal the most money of any country or bank — but its loans are so cheap and so long-term that they cost very little to pay back.
Typical loan terms
0.75–1.25% service charge · 38-year maturity · 6-year grace
Headline terms — individual loans may vary. Per-loan detail follows.
Major loans
Nepal Electricity Transmission Expansion
2017
USD 250M
High-voltage transmission
Bridges Improvement and Maintenance
ongoing
USD 220M
Road bridges
Strategic Roads Connectivity
ongoing
USD 200M
Federal highway upgrade
Health Sector Programme
ongoing
USD 150M
Health systems
What to watch
- ·IDA21 replenishment terms — any tightening reaches Nepal in 2026-2027.
- ·Currency risk: IDA is denominated in SDR (a basket including USD, EUR, JPY, GBP, CNY). NPR volatility against this basket affects repayment cost.
Sources · cited verbatim
Ministry of Finance Nepal — Public Debt Management Office — Public Debt Bulletin — external creditor share
Open release checked 2025-01-15World Bank — Nepal — IDA portfolio
Open release checked 2025-01-31