International Monetary Fund stops providing loan to Nepal

KATHMANDU: The International Monetary Fund (IMF) has stopped the second tranche of its loan commitment to Nepal.

It has demanded that the audit of Nepal Rastra Bank should be done by an international audit firm, raising questions over the audit report of the central bank.

The office of the Auditor General has been preparing the audit report of the Nepal Rastra Bank.

The government has also started the process to hire an international level audit firm to prepare the audit report of Nepal Rastra Bank after the IMF stopped providing the loan to Nepal.

The IMF had provided the loan of USD 75.5 million on December 22, 2022.

Narayan Pokharel, assistant spokesperson at the Nepal Rastra Bank, said that the IMF is yet to provide the second tranche of USD 39. 2 million to Nepal.

The IMF has committed to provide the amount under the Extended Credit Facility (ECF).

The government can spend this amount based on its needs.

The Nepal government had agreed to provide USD 398. 8 million in 38 months.

Nepal will get this amount in seven installments.