Nepal’s total debt has exceeded Rs20.07 billion with external debt at Rs10.5 billion and internal debt at Rs9.57 billion. The government has repaid Rs298 million in principal and interest of its internal debt in the first quarter of the current financial year, by issuing bonds, savings and treasury bills. However, external debt is more difficult to pay off owing to national and international events, increase in the loan and interest, and the foreign exchange rate. Nepal has been using subsidised loans from foreign donor agencies with low interest rates. The World Bank has a Rs5.26 billion loan, followed by the Asian Development bank, JICA and International Monetary Fund.