January 16, 2022 | Investopaper
The International Monetary Fund (IMF) has approved a concessional loan of about Rs 46.70 billion (US $ 395.9 million) for Nepal.
The fund has approved zero interest rate concessional loans through ‘Enhanced Credit Facility (ECF)’. Out of the loan assistance, about Rs 13.4 billion will be received immediately in the first installment and the remaining amount will be received gradually, according to the Ministry of Finance.
This assistance will be used to reduce the negative impact of COVID-19 on public health and economic activities, to protect the poor, to maintain macroeconomic and financial stability, and to continue Nepal’s reform efforts on sustainable development and poverty alleviation.
The assistance received from the fund will be spent by including it in the budget based on the needs and priorities of Nepal. The source has also been mentioned in the budget of the current fiscal year.