Kathmandu. Kathmandu: The International Monetary Fund (IMF) has decided to provide rs 5.84 billion to Nepal. After discussions between imf and Nepalese officials, it was agreed to provide $ 42.7 million (Rs 5.84 billion) as the sixth installment of extended loan facility (ECF). Nepal will receive the amount after approval from the IMF’s management and executive board.
Loan Portfolio Review (LPR) of 10 big commercial banks of Nepal has been made a key condition of the IMF.
The imf team led by Its Head of Mission Sarbat Jahan visited Nepal from May 26 to June 10, 2025. The IMF will receive $331.8 million in installments under the ECF. The IMF mission concluded that Nepal has been making satisfactory progress in economic reforms carried out using the ECF. The IMF had said that tax expenditure reform report, revised guidelines of National Project Bank and loan portfolio review of 10 big commercial banks should be completed. The IMF had also asked to amend the Rastra Bank Act in safeguard assessment 2021 and financial sector stability report 2023.
According to the IMF, Nepal’s domestic economic activity has improved, the construction sector has started moving, the hydropower sector is also expanding continuously, and the agriculture sector is also improving after the September 2024 floods. FY 2024. Nepal’s economic growth rate is projected to be 4 per cent in 2020-20, which is still below the potential, the IMF said. Inflation is at 3.4 per cent, the external sector of the economy is strengthening, exports have improved significantly, remittances have increased, tourism has also increased and imports have also increased.
However, the IMF has concluded that the risk of the financial sector has not yet decreased. “The risk to the financial sector has not decreased yet, the bad loans of banks increased by 5.2 percent in April, which has affected the capital of the banks. There are still challenges in the financial health of savings and credit cooperatives (SACOS). The IMF said.
The IMF has also predicted that the economic growth rate will improve in the next financial year and inflation will be within the limits set by the Rastra Bank.
However, the IMF has felt the need for concrete steps to minimize the risks to Nepal’s economy. It expects successful implementation of infrastructure projects, risk reduction in the financial sector, reducing uncertainty and tensions in global trade and comprehensive reforms in domestic policies.
“Monetary policy should focus on economic growth based on data-based perception and price stability and external sector stability, the amendment of the Rastra Bank Act should increase the autonomy of the central bank, and create an environment to work with high alertness to reduce the increasing risk in the financial sector.” “The IMF said.
The IMF has also raised the issue of timely review of loan portfolio of 10 big banks in view of the risky situation in the financial sector. It has also said that the problems of the troubled savings and credit cooperatives should be resolved on priority.
The IMF has pointed out the need to take special care while formulating the concept of asset management companies and also to improve the debt recovery framework.
It has also pointed out the need to pay special attention to asset purification and implementation of AML-CFT.
Imf Mission Deputy Prime Minister and Finance Minister Bishnu Prasad Poudel, National Planning Commission Vice-Chairman Prof Dr Shivaraj Adhikari, Nepal Rastra Bank (NRB) Governor Dr. Dipu Moni were also present on the occasion. Bishwanath Poudel also held discussions with other government officials and other high-ranking officials of the central bank and officials of private banks.
प्रतिक्रिया दिनुहोस्