April 15, 2020, Kathmandu
IMF announced debt relief for Nepal with 24 other countries to help them fight the economic crisis. The coronavirus outbreak has led to many businesses being shut down or stopped operating. The state backs these big or small businesses.
But when the country is itself trying hard to manage resources to fight against coronavirus who would support them?
When coronavirus has hit many big countries, the hardest, many developing countries are lucky not to have suffered the most. But with the increasing number of cases in developing nations and due to lockdowns, their economy is starting to crumble.
To prevent these countries from the economic crisis caused by the outbreak, the International Monetary Organisation on Monday has announced that it will provide immediate debt relief to Nepal and 24 other countries.
IMF Managing Director Kristalina Georgieva said that this provides grants to most vulnerable members to cover their IMF debt obligations for an initial phase over the next six months. And they added that it would help them channel more of their scarce financial resources towards vital emergency medical and other relief efforts.
Under its Catastrophe Containment and Relief Trust (CCRT), the IMF can currently provide about US$500 million in grant-based debt service relief, including the recent US$185 million pledge by the UK and US$100 million provided by Japan as immediately available resources.
As vulnerable and developing countries are facing an increase in the COVID-19 cases, a business within them is being shut down. The government is trying their best to manage resources, look upon their citizens and save their countries businesses. The IMF was established with the core purpose of helping nations in need, and they are doing so by providing debt relief to some governments. At the same time, many different countries are in support of other nations by providing them relief funds or medical assistance.