Nepal to benefit from debt service relief amounting to NPR 582 million

Kathmandu / April 6: Nepal has received a debt service relief amounting to NPR 582 million (EURO4.299 million) through a European Union contribution of EURO 183 million to the ‘Catastrophe Containment Relief Trust (CCRT) set up by the International Monetary Fund (IMF).

Nepal is among 28 other countries receiving the debt service relief.

The CCRT aims to provide debt service relief to the poorest and most vulnerable countries facing unsustainability due to public expenditure required to address the COVID-19 pandemic and other disasters, according to a press statement issued by the EuropeanUnion in Nepal.

More than half of low-income countries are in high risk or already in debt distress.

The European Union has been supporting partner countries in maintaining their commitment and path towards the Sustainable Development Goals despite dire financial situations.

CCRT aims to support countries becoming unsustainable due to public expenditure required to address the COVID-19 pandemic. More than half of low-income countries are in high risk or already in debt distress.

The European Union alongside the development partners’ community has been supporting Nepal in its green, resilient and inclusive recovery from the adverse impacts of the pandemic. The announcement of an aid package of Euro 75 million (NPR 9.8 billion) in April last year was a move in the same direction.