Kathmandu [Nepal], December 4 (ANI): Nepal and China on Wednesday signed a "Framework for Belt and Road Cooperation" during the visit of Prime Minister KP Sharma Oli by replacing 'grant financing' with "aid financing."

The agreement was formalised during a special ceremony held in Beijing between the Government of Nepal and the Government of China, the Ministry of Foreign Affairs said on X.

Also Read | Cargill Layoffs: Minnesota-Based Food Production Company To Lay Off 5% of Its Employees To Address Declining Profits.

Agreement between the two countries formally got inked after the term "aid financing" was replaced with "grant financing." While a grant refers to a subsidy, aid can encompass both grants and loans, offering more flexibility in the terms of assistance.

The shift in language came after China rejected Nepal's proposal that the projects under the Belt and Road Initiative (BRI) should be funded by Beijing and that Kathmandu would not take loans under the BRI.

Also Read | E Coli Outbreak Linked to McDonald’s Quarter Pounder Hamburgers Ends, US CDC Confirms; Onions Identified as Source.

The BRI agreement attracted significant attention during Oli's official visit to China that concludes on December 5. As per the photos released by Nepal's Ministry of Foreign Affairs (MoFA), foreign secretaries of China and Nepal have signed the framework agreement.

Nepal sent the draft of the framework ahead of Oli's embarking for Beijing on December 2. In response, Nepal and Chinese officials held informal discussions on Tuesday to find a middle ground.

https://x.com/kpsharmaoli/status/1864224992017437128?s=48&t=0HTWU9C_Q912gdU9MXlF4Q

Reacting to the agreement, Oli said on X, "Today, we signed the Framework for Belt and Roads Cooperation. As my official visit to China concludes, I am honoured to reflect on the bilateral talks with Premier Li Qiang, discussions with NPC Chairman Zhang Leji, and the highly fruitful meeting with President Xi Jinping."

Further, the Prime Minister stated, "Nepal-China economic cooperation will further strengthen under the Belt and Road Framework Cooperation."

China subsequently removed the term "grant financing" from the draft framework proposed by Nepal, replacing it with the more general term "financing." Amidst the ongoing discussions, the Nepali Congress's stance against taking loans under the BRI led the Nepali government to prepare a list of projects intended solely for grant financing.

The MoUs could not be signed during a meeting between Prime Minister KP Oli and Chinese Premier Li Qiang.

However, Nepali Foreign Minister Arzu Rana later met with representatives from the Chinese Foreign Ministry. During these talks, the Chinese side proposed that some BRI projects be funded through loans, but no decision was made by Nepal.

According to an official from the Nepal delegation, there was further internal discussion on various options. One of the key points was whether to replace "grant" with "aid," which was ultimately agreed upon.

A joint statement released by Nepal and China late on December 3 indicated that "both sides have shown their willingness to sign the MoU on establishing the Trans-Himalayan Multi-Dimensional Connectivity Network (THMDCN) and the framework for Belt and Road Cooperation between the two governments at the earliest opportunity." (ANI)

(This is an unedited and auto-generated story from Syndicated News feed, LatestLY Staff may not have modified or edited the content body)