The International Monetary Fund (IMF) on Thursday said it has approved $214 million in funding for Nepal to help the tourism-dependent South Asian country address severe loss of income caused by the collapse in global travel after the coronavirus (COVID-19) pandemic
WASHINGTON (Pakistan Point News / Sputnik - 07th May, 2020) The International Monetary Fund (IMF) on Thursday said it has approved $214 million in funding for Nepal to help the tourism-dependent South Asian country address severe loss of income caused by the collapse in global travel after the coronavirus (COVID-19) pandemic.
"The IMF Executive board approved the disbursement of US$214 million in emergency financing to help Nepal address urgent balance of payments needs created by COVID-19, which is having a severe impact on remittances, tourism, and domestic activity, and will substantially weaken Nepal's GDP growth, balance of payments, and fiscal position," the IMF said in a statement.
It said tourist arrivals in Nepal collapsed in recent months, and domestic activity had taken a hit as well amid social distancing measures.
"To address the pandemic, the Government of Nepal has taken measures to increase health spending, strengthen social assistance, ensure adequate liquidity in the financial system, and support access to credit. IMF financing will help fill immediate financing needs and will catalyze additional financing from Nepal's development partners to support the COVID-19 response," the statement said.
Nepal has one of the lowest infections of COVID-19 compared to the rest of the world, with just 99 recorded cases and no deaths so far. But health experts also worry that a lack of testing in many poorer countries may be keeping their statistics on the pandemic artificially lower.
