Nepal is going to receive debt relief from the International Monetary Fund (IMF) for six months as part of its response to help address the impact of the Covid-19 pandemic.
The global monetary advisor announced the debt service relief for the 25 countries – including Nepal, Afghanistan, Benin, Burkina Faso, Central African Republic, Chad, Comoros, Congo, DR, The Gambia, Guinea, Guinea-Bissau, Haiti, Liberia, Madagascar, Malawi, Mali, Mozambique, Niger, Rwanda, São Tomé and Príncipe, Sierra Leone, Solomon Islands, Tajikistan, Togo, and Yemen – today under its revamped Catastrophe Containment and Relief Trust. “As of December 2019, Nepal’s outstanding loans to be paid to the international institutions stands at SDR 38.5 million ($52.36 million),” according to the fund's website.
The SDR (Special Drawing Rights) are the units of account, which is like currency and pegged with a basket of important foreign currencies like the US dollar, euro, Chinese yuan and Japanese yen. One SDR is equivalent to $1.36.
Nepal had received loans from the fund after the devastating earthquake in April 2015. “Debt relief for six months means Nepal need not pay installment – including principal and interest – for six months.
The government had however requested IMF to provide debt relief for two years.
During a video conference with senior officials of multilateral development partners including IMF, the World Bank (WB), Asian Development Bank (ADB) and Asian Infrastructure Investment Bank (AIIB), finance minister Dr Yuba Raj Khatiwada had asked for a deferral of the loan repayment schedule and debt relief from development partners, though Nepal has forex reserve that can pay for the import of goods and services for 8 months.
The IMF provides grants to its poorest and most vulnerable members to cover their debt obligations for an initial phase over the next six months, under the scheme.
“This will help them channel more of their scarce financial resources towards vital emergency medical and other relief efforts,” managing director of the IMF Kristalina Georgieva said, adding that the Catastrophe Containment and Relief Trust can currently provide about $500 million in grant-based debt service relief, including the recent $185 million pledge by the UK and $100 million provided by Japan as immediately available resources.
“Others, including China and the Netherlands, are also stepping forward with important contributions,” the press note issued by the IMF reads.
Georgieva has also urged the development partners to help it replenish the Trust’s resources and boost further its ability to provide additional debt service relief for a full two years to its poorest member countries.
The global monetary advisor announced the debt service relief for the 25 countries – including Nepal, Afghanistan, Benin, Burkina Faso, Central African Republic, Chad, Comoros, Congo, DR, The Gambia, Guinea, Guinea-Bissau, Haiti, Liberia, Madagascar, Malawi, Mali, Mozambique, Niger, Rwanda, São Tomé and Príncipe, Sierra Leone, Solomon Islands, Tajikistan, Togo, and Yemen – today under its revamped Catastrophe Containment and Relief Trust. “As of December 2019, Nepal’s outstanding loans to be paid to the international institutions stands at SDR 38.5 million ($52.36 million),” according to the fund's website.
The SDR (Special Drawing Rights) are the units of account, which is like currency and pegged with a basket of important foreign currencies like the US dollar, euro, Chinese yuan and Japanese yen. One SDR is equivalent to $1.36.
Nepal had received loans from the fund after the devastating earthquake in April 2015. “Debt relief for six months means Nepal need not pay installment – including principal and interest – for six months.
The government had however requested IMF to provide debt relief for two years.
During a video conference with senior officials of multilateral development partners including IMF, the World Bank (WB), Asian Development Bank (ADB) and Asian Infrastructure Investment Bank (AIIB), finance minister Dr Yuba Raj Khatiwada had asked for a deferral of the loan repayment schedule and debt relief from development partners, though Nepal has forex reserve that can pay for the import of goods and services for 8 months.
The IMF provides grants to its poorest and most vulnerable members to cover their debt obligations for an initial phase over the next six months, under the scheme.
“This will help them channel more of their scarce financial resources towards vital emergency medical and other relief efforts,” managing director of the IMF Kristalina Georgieva said, adding that the Catastrophe Containment and Relief Trust can currently provide about $500 million in grant-based debt service relief, including the recent $185 million pledge by the UK and $100 million provided by Japan as immediately available resources.
“Others, including China and the Netherlands, are also stepping forward with important contributions,” the press note issued by the IMF reads.
Georgieva has also urged the development partners to help it replenish the Trust’s resources and boost further its ability to provide additional debt service relief for a full two years to its poorest member countries.
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