The international donor community has expressed its readiness to support Nepal financially to rescue its flagging economy and ensure peace, the Himalayantimes.com reported on Wednesday.

The donors, who attended an exclusive meeting called on here by Nepali Finance Minister Ram Sharan Mahat Wednesday, also expressed concern about negotiations between the government and the anti- government guerrillas and the prospects of sustained peace, the website said.

At the meeting, Mahat told participants that security expenditure over the past four years has exceeded 3.4 percent of the total Gross Domestic Product (GDP), which is very high for a country like Nepal where annual revenues make up only about 13 percent of GDP.

Mahat said that in the current fiscal year, there will be an additional deficit of about 5.1 billion Nepali rupees (72.85 million US dollars).

Most donor representatives underlined the need to include the development agenda in the talks with the guerrillas and the need for security at the local level to keep development projects going.

Ken Ohashi, country director of the World Bank (WB), expressed serious concerns regarding the imminent expiry of Poverty Reduction Growth Facility (PRGF), and asked for detailed programs and policies from the Nepali government on the basis of a consensus.

Sukhwinder Singh, chief of the Nepal-based International Monetary Fund (IMF), said that the international donor community will support Nepal in this critical juncture.

Ambassador of Denmark Finn Thilsted announced that the Danish government will restart the rural energy program amounting to 1.5 billion rupees (21.42 million dollars), which was suspended earlier.

Thilsted also said that Denmark is ready to provide 500 million rupees (7.1 million dollars) more to Nepal for peace process and demobilization of army and the guerrillas.

James F Moriarty, United States ambassador to Nepal, said that successful peace talks are needed, adding the United States is keen to see a successful transition of democracy in Nepal.

Matthew Kahane, resident chief of United Nations (UN) Development Program Kathmandu, said that the United Nations is ready to support the Nepali government during the conflict and political instability.

He expressed hope that negotiations between the government and the guerrillas will be effectively concluded.

Source: Xinhua