Nepal: Request for Disbursement Under the Rapid Credit Facility-Press Release; Staff Report; and Statement by the Executive Director for Nepal
IMF Staff Country Reports, May 11, 2020
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- Nepal: Request for Disbursement Under the Rapid Credit Facility-Press Release; Staff Report; and Statement by the Executive Director for Nepal
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Bibliographic details
- Published: May 11, 2020
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781513543253.002
Summary and economic impact
- The paper presents Nepal’s Request for Disbursement Under the Rapid Credit Facility (RCF).
- The coronavirus disease 2019 pandemic is having a severe impact on Nepal’s economy.
- Recent developments:
- Remittances have fallen considerably.
- Tourist arrivals collapsed.
- Domestic activity has taken a hit amid social distancing measures.
- Additional assistance from development partners, beyond what had already been committed before the outbreak of the pandemic, is needed to close the remaining balance of payments gap and ease the fiscal situation.
Policy response and measures by the authorities
- Authorities are taking proactive, well-targeted measures to address the human and economic impact of the pandemic while preserving macroeconomic stability, including:
- Increasing health spending.
- Strengthening social assistance to protect the most vulnerable.
- Providing bank liquidity and credit support.
- The authorities’ commitment to high standards of transparency and governance in the management of financial assistance is noted as welcome.
IMF assessment and expected role of RCF disbursement
- IMF staff assesses that Nepal meets the RCF eligibility requirements and supports the request.
- Public debt is at low risk of distress and there is adequate capacity to repay the Fund.
- The IMF disbursement is expected to play a catalytic role in securing additional financing from Nepal’s development partners.
Key statistics and publication metadata
- Pages: 42
- Volume: 2020
- Issue: 155
- Series: Country Report No. 2020/155
- DOI: https://doi.org/10.5089/9781513543253.002
- Stock No: 1NPLEA2020003
- ISBN: 9781513543253
- ISSN: 1934-7685
Subjects and keywords
- Subject: COVID-19, Credit, Debt sustainability analysis, External debt, Health, Money, Public debt
- Keywords: COVID-19, CR, Credit, Debt sustainability analysis, financial support, financing, financing gap, financing needs, Global, government financing, IMF financial support, ISCR, Nepal government, net incurrence
Source: Nepal: Request for Disbursement Under the Rapid Credit Facility-Press Release; Staff Report; and Statement by the Executive Director for Nepal (IMF Staff Country Reports 2020, 155).
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- 1nplea2020003