NEPAL SUPPORTS ASIAN DEVELOPMENT BANK GENERAL

UNCLAS KATHMANDU 000344 SENSITIVE SIPDIS DEPT FOR EAP/EP:KATHY HADDA, EEB/IFD/ODF:RACHEL LEATHAM AND MARGUERITE SIEMER, AND SCA/INS E.O. 12958: N/A TAGS: PREL PGOV ETRD ECON EAID ADB NP SUBJECT: NEPAL SUPPORTS ASIAN DEVELOPMENT BANK GENERAL CAPITAL INCREASE REF: STATE 41663 ¶1. (SBU) The Government of Nepal supports the proposed 200 percent general capital increase for the Asian Development Bank (ADB). On April 29, Mani Bhattarai, Section Officer for UN and International Organizations at the Ministry of Foreign Affairs, told Emboff that he had consulted with the Ministry of Finance to confirm its position. Emboff had earlier met with Bhattarai to convey U.S. support for the ADB general capital increase paired with reforms as requested in reftel. Bhattarai asked what portion of the estimated $100 billion total capitalization increase the United States expected to contribute. Emboff responded that U.S. contributions would be contingent on Congressional approval but did not state a specific amount. ¶2. (SBU) Emboffs also discussed the ADB capital increase with Deependra Bahadur Kshetry, Governor of Nepal Rastra Bank, on April 27. Kshetry noted that Nepal, as an ADB beneficiary, would continue to appreciate the Bank as a valuable resource in the weak global economy regardless of the actual increase approved. POWELL