January 16: The government has decided to accept a concessional loan of almost Rs 47 billion from the International Monetary Fund (IMF) in a bid to resolve the current financial crisis faced by the country. The International Monetary Fund had decided to provide a concessional loan of Rs 46.7 billion loan under the enhanced credit facility (ECF) to Nepal at zero percent interest rate upon the request from the Ministry of Finance.

Under the credit facility, the government will received a sum of Rs 13 billion (US$ 110 million) as the first installment within a week, according to the Ministry of Finance. The ministry further said that the remaining amount will be received in various installments.

The fund will be utilized to give continuity to the government’s attempts to minimize the impacts of Covid-19 on public health and economy, protect the underprivileged groups, develop the overall economy and to help in financial stability,  sustainable development and poverty alleviation.

The financial assistance received from the IMF will be included in the budget as per the requirement and on priority basis.

Secretary at the MoF Ritesh  Shakya informed that the concessional loan can be included in the budget of the current fiscal year as per an understanding reached with the officials of IMF.

The IMF had announced last year to provide concessional loans to 25 developing nations including Nepal amid Covid-19 pandemic.