COVID-19: EU provides debt relief to Nepal

ENepal has received a debt service relief amounting to Nepali Rupees 582 million through a trust set up by the IMF to help the poorest and the most vulnerable countries to address the COVID-19 pandemic and other disasters.

Nepal is among 28 other countries receiving the debt relief, according to a statement issued by the EU Nepal Office.

The relief has been grated through Catastrophe Containment Relief Trust (CCRT) set up by the International Monetary Fund (IMF).

The CCRT aims to provide debt relief to the poorest and most vulnerable countries facing unsustainability due to public expenditure required to address the COVID-19 pandemic and other disasters, according to a statement issued by the European Union in Nepal. More than half of low-income countries are in high risk or already in debt distress.

The European Union has been supporting partner countries in maintaining their commitment and path towards the Sustainable Development Goals despite dire financial situations.

“The European Union alongside the development partners’ community has been supporting Nepal in its green, resilient and inclusive recovery from the adverse impacts of the pandemic,” the statement said.

The announcement of an aid package of 75 million euros (Nepali Rupees 9.8 billion) in April last year was a move in the same direction.

Source: Cnbctv18