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US dismisses reports of threatening Nepal over MCC

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                                      The US embassy in Nepal has rejected reports suggesting America is threatening Nepal to ratify the proposed grant assistance under the Millennium Challenge Corporation (MCC). “After years of delays on following through on Nepal’s promise, we simply ask that ratifying the agreement be brought to a vote so the people, through their elected officials have their say,” he added.Ambassador Berry said this year marks the 75th year of ties between Nepal and the United States and America has stood with Nepal through "monumental and incredible changes".

                                    "The relationship between the United States and Nepal is broader than one agreement. During these 75 years, Nepal has seen monumental and incredible changes. We have stood with Nepal through these changes and supported the country with development aid, disaster response and preparedness assistance, health and education programs, and more,” ambassador Berry said. 

                                   “Unfortunately, this development program has been mired in disinformation.  This is disinformation about a program which is based on transparency, accountability, and democracy – who would be against that?” he added in the statement. As per reports, US Assistant Secretary of State Donald Lu had raised the issue earlier during his separate telephonic conversation with Prime Minister Sher Bahadur Deuba and other ruling leaders. 

                                    It is said that Lu warned that “if Nepali political leadership failed to endorse the MCC compact grant within the stipulated deadline of February 28, the US would be forced to review its ties with Nepal”. The letter had come in response to the commitment letter sent by Prime Minister Deuba and CPN-Maoists chairman Prachanda on September 29, 2021, to the MCC Board of Directors. In the letter, Nepal has committed to passing the compact with the required parliamentary majority within four-five months, the deadline which is approaching. 

                                   As the deadline is hovering over the head of the Prime Minister, it seems the ruling alliance is in favour of finding a consensus on the MCC Nepal compact before it enters into the parliament. 

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