Kathmandu, August 2

The Executive Board of the International Monetary Fund (IMF) has approved a disbursement of SDR 35.6 million ($49.7 million) for Nepal under the Rapid Credit Facility (RCF).

This financial support will help the country address the urgent balance of payments and fiscal needs associated with the rehabilitation and reconstruction efforts in the aftermath of the powerful earthquake that occurred on April 25 causing widespread damage and devastation, says a statement issued by the IMF.

The Executive Board’s approval enables the disbursement of the full amount, which represents 50 per cent of Nepal’s quota of SDR 71.30 million in the IMF.

The IMF generally provides RCF to low-income countries with an urgent balance of payments need.

However, at the request of the authorities, the money will be disbursed as direct budget support to the Ministry of Finance’s account at the central bank of Nepal, adds the release.