IMF providing three-year US $ 400 million financing package to Nepal

Kathmandu / Dec 7: Nepal has stepped up to receive a loan amounting US $ 400 million from the International Monetary Fund (IMF) under the Extended Credit Facility.

According to a press statement issued by the IMF, it is supporting Nepal with a 38-month program to help the country in its process of economic recovery following the impacts of the coronavirus pandemic. The international organization in this regard has reached a staff-level agreement with Nepal.

“The COVID-19 pandemic has taken a heavy toll on Nepal’s economy, severely impacting people’s health and livelihoods. GDP contracted in 2019-20, and Nepal suffered a devastating second wave in 2021, which interrupted a gradual recovery in economic activity,” reads the statement.

The agreement is expected to receive the final approval from the IMF’s executive board in the coming weeks, said the IMF.