Asian Development Bank will not stop aid

The Asian Development Bank (ADB) has refuted claims it was stopping aid to Nepal, following reports out of Istanbul earlier this month that bank president Haruhiko Karudo said they would stop future aid programmes to the Himalayan kingdom unless the government took measures to improve the country's human rights situation. "At no time did Mr Kuroda mention that the bank might stop its aid to Nepal," a bank official told IRIN from Manila. "He said that ADB was monitoring the situation cautiously," he said, adding that Kuroda had been inaccurately quoted. The bank official added, however, that the bank had not approved any new projects yet. This was not the first time that ADB's position over assistance to Nepal had been the subject of speculation in the media. In February, the bank came under immense pressure over reports that it had pledged new assistance of US $121 million after Nepal's King Gyanendra declared a state of emergency and assumed direct rule over the country. According to the ADB Nepal office, the aid was already committed in October 2004 and that it continued to support Nepal through 22 development projects around the country. ADB is a multilateral development finance institution dedicated to reducing poverty in Asia and the Pacific, headquartered in Manila. Established in 1966, it has 63 members, mostly from the region, with 27 offices worldwide. Nepal is a founding member of the bank and has had a development partnership with the bank since 1968.