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ECONOMY, Republica Watch

Nepal likely to face steeper loan costs as donors start hiking interest rates

The government has been relying on borrowing to bridge the gap between income and expenditure. In the last fiscal year, total revenue and foreign grants amounted to Rs 1.197 trillion, while government expenditure soared to Rs 1.523 trillion.
By RAJESH KHANAL

KATHMANDU, July 29: As Nepal continues to grapple with mounting public debt year after year, the financial burden is expected to grow even further in the coming year. Donors and development partners have begun raising interest rates on their loans, citing the country's rising per capita income as the reason for the shift.

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