Nepal: Request for Disbursement Under the Rapid Credit Facility

IMF Staff Country Reports, August 4, 2015

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Nepal: Request for Disbursement Under the Rapid Credit Facility

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Bibliographic details

• Published: August 4, 2015
• Series: IMF Staff Country Reports
• DOI: https://doi.org/10.5089/9781513510279.002

Executive summary and request

• The authorities of Nepal requested financial assistance under the IMF’s Rapid Credit Facility (RCF) to address urgent balance of payments and fiscal needs arising from rehabilitation and reconstruction after the April 2015 earthquake.
• IMF staff supports the authorities’ request for a disbursement under the RCF in the amount of SDR 35.65 million.
• Before the April 2015 earthquake, Nepal’s macroeconomic performance was described as "broadly favorable."

Macroeconomic context and binding constraints

• Pre-earthquake strengths:
  • Macroeconomic performance: "broadly favorable" prior to April 2015.
• Binding constraints highlighted:
  • Weak government budget implementation capacity that "held back growth and propped up the external position."
  • Main policy challenge: boost capacity to plan, prioritize, and implement capital spending.

Policy focus and recommended priorities

• Immediate objective:
  • Address urgent balance of payments and fiscal needs associated with rehabilitation and reconstruction efforts through RCF financing.
• Medium-term institutional priority:
  • Strengthen public financial management to improve budget planning, prioritization, and execution of capital budgets.
• Fiscal and external policy implications:
  • Use RCF disbursement to stabilize external position and support reconstruction-related public spending while improving budget implementation capacity.

Report metadata and scope (as reported)

• Document date: August 4, 2015.
• Page count: 49.
• Series: Country Report No. 2015/224.
• Subjects listed: Budget execution and treasury management; Budget planning and preparation; Capital budget; External debt; Public debt; Public financial management (PFM).

Source: Nepal: Request for Disbursement Under the Rapid Credit Facility (IMF Staff Country Reports), August 4, 2015.

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• _cr15224 — Executive Summary and Selected Boxes
  • _cr15224 — Executive Summary and Selected Boxes (Markdown version)
  • _cr15224 — Executive Summary and Selected Boxes (PDF)