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Recently inaugurated Pokhara International Airport has come up with a USD 215 million loan from the Chinese EXIM Bank. The terms for this financing are highly adverse for Nepal's economy. The rate of interest charged on this loan is 2 per cent, much higher than what other multilateral lenders such as the World Bank and Asian Development Bank (ADB) charge, hovering around 0.25 to 0.75 per cent. In contrast to these multilateral institutions which offer a payback term extending up to 40 years, the Chinese loan can be availed only with a payback deadline of a maximum of 15 to 20 years, Pardafas reported.

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