The World Bank’s Board of Executive Directors approved a USD 95 million operation to help expand access to finance for more than 100,000 small and medium enterprises in Nepal and support job-led growth under the Sustainable and Inclusive Finance Project. The operation will strengthen Nepal’s Deposit and Credit Guarantee Fund to expand risk-sharing, enhance financial sustainability, and introduce new guarantee products for underserved segments including women-led businesses. It also backs upgrades to the fund’s management information system, improvements to claims-settlement efficiency, and a transition to risk-based pricing and first-loss coverage. In parallel, the project will invest in the technology and institutional capacity of the Credit Information Bureau of Nepal to expand data coverage, integrate alternative data sources, and enhance data security and privacy, building on reforms under a World Bank-financed development policy credit series concluded in 2024 and aligning with Nepal’s second Financial Sector Development Strategy.

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