Nepal has obtained debt relief worth Nepali Rupees 582 million from an IMF trust established to assist the world’s poorest and most vulnerable countries in dealing with the COVID-19 pandemic and other disasters. According to a statement released by the EU Nepal Office, Nepal is one of 28 countries seeking debt relief.
The relief was provided by the International Monetary Fund’s Catastrophe Containment Relief Trust (CCRT) (IMF). According to a statement released by the European Union in Nepal, the CCRT aims to provide debt relief to the poorest and most vulnerable countries facing unsustainability due to public expenditure needed to resolve the COVID-19 pandemic and other disasters. More than half of low-income countries are at risk of default or are already in debt
Despite desperate financial circumstances, the European Union has been assisting partner countries in sustaining their engagement and progress toward the Sustainable Development Goals. “The European Union, in collaboration with development partners, has been assisting Nepal in its green, robust, and inclusive recovery from the pandemic’s adverse effects,” according to the release.
In April of last year, a 75 million euro (Nepali Rupees 9.8 billion) aid package was announced, which was a step in the right direction.