World Bank’s warning based on “poor assessment of ground realities”: Govt
The government has sent a strong-worded rebuttal to the World Bank’s letter it received last week in which the latter had threatened to pull out of the financial sector reform program “if the government failed to restore the ICCMT management team at Nepal Bank Limited (NBL) by the end of August".
In a letter sent to the World Bank (WB) on Monday, the Finance Ministry said, “Some of the remarks (in WB’s letter) are sweeping and made without proper assessment of ground realities.”
The letter, signed by finance secretary Bidhyadhar Mallik also raised serious objection over the tone of the WB letter making the allegation. “I regret to say that the tone and some content of the letter do not reflect the mutual trust and confidence that has generally characterized our relationship with the World Bank.”
The ICCMT team, which had been handling NBL management for the last five years, had unilaterally terminated the management contract on July 22 citing inadequate cooperation from the central bank.
The letter rejected the WB allegation that the government failed to create a conducive environment, as it did not work to stop interference from the NBL board and the unions. The letter said that the government and Nepal Rastra Bank did their best to settle the differences between the management team and the unions. nepalnews.com ag Aug 01 07
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