According to the EU Delegation to Nepal, Nepal is one of 28 countries to obtain debt service relief worth Euro 4.299 million (roughly Rs 582 million) thanks to a European Union donation of Euro 183 million to the International Monetary Fund’s Catastrophe Containment Relief Trust (CCRT).
The CCRT seeks to provide debt relief to the poorest and most distressed countries in the event of disasters and catastrophes.
The EU Ambassador to Nepal, Nona Deprez, said in a statement, “We are happy to share the good news and believe that the debt relief will build a fiscal space enabling Nepal to transition to a green, resilient, and inclusive recovery from the Covid-19 pandemic.”
The debt relief for Nepal, according to Ambassador Deprez, is in line with European Commission President Ursula von der Leyen’s Global Recovery Plan, which calls for investments and debt relief to be related to the SDGs.
“Through this contribution, Team Europe continues to stand in solidarity with its most vulnerable partners,” according to Jutta Urpilainen, European Commissioner for International Partnerships. “In this difficult period, the resources freed up will include social services for the most vulnerable people, such as access to essential healthcare and education for young people, incl.
The European Union says it has been assisting Nepal in its green, robust, and inclusive recovery from the pandemic’s negative effects, alongside development partners.