Nepal: Staff Report for the 2012 Article IV Consultation
IMF Staff Country Reports, December 6, 2012
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- Nepal: Staff Report for the 2012 Article IV Consultation
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Bibliographic details
- Published: December 6, 2012
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781475555479.002
Political context and implications for macroeconomic management
- Nepal is described as a "post-conflict state seeking to formalize democracy in a challenging environment."
- Significant headway toward a new state has been made since the 2006 peace accord.
- The constituent assembly failed to meet an end-May 2012 deadline to ratify a new constitution, representing "a serious setback, and a major impediment to macroeconomic management and prospects for growth."
- The constituent assembly was dismissed in June 2012, leaving day-to-day operations in the hands of a caretaker government.
- New elections are notionally slated for April 2013, but will require fractured political parties to agree on an interim consensus government.
- The lack of a consensus government and functioning parliament is associated with:
- Delays to key articles of legislation (such as the government budget).
- Dampened investment (foreign and domestic).
- Reduced potential donor support.
- Undermined prospects for sensitive financial sector and state enterprise reforms.
Technical progress and policy areas
- Progress has been achieved on a range of technical issues, including:
- Public financial management.
- Monetary policy.
- Financial sector supervision.
Risks to growth and financial-sector reforms
- Political impasse and caretaker governance are identified as principal constraints on:
- Macroeconomic management.
- Prospects for growth.
- Implementation of financial sector and state enterprise reforms.
- The political situation is explicitly linked to lower investment and constrained donor engagement.
Subject coverage and keywords (from the report)
- Subject: Balance of payments, Banking, Commercial banks, Economic sectors, External debt, Financial institutions, Financial sector, Public debt, Remittances
- Keywords include: authority, balance sheet, banking sector problem, broad money, Commercial banks, CR, debt, deficit, exchange rate, Financial sector, Global, inflation front, interest rate, ISCR, monetary management, Nepalese authorities, Remittances
International Monetary Fund. "Nepal: Staff Report for the 2012 Article IV Consultation", IMF Staff Country Reports 2012, 326 (2012).
Content in this bundle
- Nepal: 2012 Article IV Consultation; IMF Country Report 12/326; November 2, 2012