Swiss Investment Fund for Emerging Markets makes first investment in Nepal

"This investment will give micro, small and medium enterprises (MSMEs) access to finance and will contribute to the development of the financial sector."

NL Today

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Kathmandu: The Swiss Investment Fund for Emerging Markets (SIFEM) has made its first investment in Nepal.

SIFEM has supported NMB Bank with a loan of USD 12 million that will be used for lending to local businesses. This investment will give micro, small and medium enterprises (MSMEs) access to finance and will contribute to the development of the financial sector.

This transaction was made possible by a guarantee provided to SIFEM by the Swiss Agency for Development and Cooperation (SDC), SIFEM said in a statement.

SIFEM’s loan to NMB Bank will give the bank flexibility to provide long-term financing to MSMEs. This will support the overall resilience and recovery of the economy and preserve jobs, according to the statement.

Thomas Gass, Assistant Director General of the SDC, stressed the importance of the newly established cooperation between SIFEM and SDC.

“Thanks to a guarantee program provided by the SDC, SIFEM should be able to invest more in the least Developed Countries such as Nepal.”

SIFEM’s Chairman, Jörg Frieden, also highlighted the importance of this new investment. “We are pleased that SIFEM was able to make its first investment in Nepal, a focus country of Switzerland’s development cooperation. The country has been hit by the pandemic and its private sector is suffering acutely from the crisis.”

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