Kathmandu, May 7

The executive board of the International Monetary Fund (IMF) has approved a disbursement to Nepal under the Rapid Credit Facility (RCF) equivalent to SDR 156.9 million (about $214 million, 100 per cent of quota) to help cover urgent balance of payments (BoP) and fiscal needs stemming from the COVID-19 pandemic.

The COVID-19 pandemic is having a severe impact on Nepal’s economy. During recent months, remittances have fallen considerably, tourist arrivals have collapsed, and domestic activity has taken a hit amid social distancing measures.

“The IMF financial support will make a substantial contribution to filling immediate external and fiscal financing needs that have emerged due to COVID-19,” a media release issued by the IMF says, adding, “It is also expected to catalyse additional support from development partners.”