Denemarken schort financiering van ontwikkelingsprojecten op
Denmark suspends development projects.
Denmark has suspended plans to finance development projects in Nepal, a
Danish embassy official said wednesday. No formal reasons were given for the
suspension of the Danish aid of around 25.56 million dollars annually. "We have
informed the Nepalese government that ther will be no signing of any agreement
for a number of integrated rural development projects, cooperation for the
control of administrative corruption, community forestry, health and educational
programmas in Nepal's new fiscal year starting in mid-July," the official said.
There was no immediate reaction from the government on the move by Denmark,
Nepal's second largest bilateral aid donor after Japan for its rural,
environmental, forestry, health and educational programmers. The charge
d'affaires of the Danish embassy in Kathmandu, like other European envoys, has
been called home following the declaration of a state of emergency in Nepal.
Of Nepal's total development budget of 67.6 billion rupees (957.5 million
dollars), 47.6 percent is met by foreign grants and loans. "If the current
political situation does not improve, the country may face a grave economic
crisis as the government has not been able to collect the earmarked revenues,"
economic analyst Prithvi Raj Ligal warned.
"The government has not been able to collect even 28 percent of the 70.3 billion
rupees (996.0 million dollars) expected revenue under the current annual budget
due to failure in trade... and tourism and due to other reasons," Ligal said.
Source: Kathmandu Post - 16-2-2005
keyterms: development aid, Denmark, Danish,
embassy, Kathmandu, budget, government, Japan
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