The World Bank last week approved US$75.5 million credit for financial sector reform program to Nepal.

The project will be supported through the International Development Association, the World Bank’s concessionary lending arm, with a US$68.5 million credit and US$7 million grant.

Ken Ohashi, World Bank Country Director, Nepal in a statement released here on March 10, 2004 said, “In view of the slow progress in commercial banks’ debt recovery, some Executive Directors questioned whether the government is fully committed to taking tough reform actions, and hence the reluctance to support this project by several of them”.

He added, “approval of this new credit is that the Bank stands ready to support these difficult reforms, but only to the extent that the authorities do their part, including the pursuit of large, willful defaulters with the utmost vigor”.

Now the question arises as to who will be the next target.