Sum of Measures 1—5 (Total Package)
|Measure||Amount (Local)||Amount (USD)||Details||Update||Source|
|01 - Liquidity Support info_outline|
|01A - Short-term lending info_outline||
No amount/estimate: April 29, Businesses in affected sectors, if they can show the need, can qualify for additional working capital loans of up to 10% of the approved amount of their existing working capital loans, to be repaid within a year at most.
|01B - Support policies for short-term lending info_outline||
No amount/estimate: March 29, The Nepal Rastra Bank (NRB) lowered its cash reserve ratio from 4% to 3%.
|01C - Forex operations info_outline|
|02 - Credit creation info_outline|
|02A - Financial sector lending/funding info_outline||
No amount/estimate: March 29, The size of the Refinance Fund has been increased to provide subsidized funding for banks willing to lend at a concessional rate to priority sectors including small and mid-size enterprises affected by the pandemic.
|02B - Support policies for long-term lending info_outline||
No amount/estimate: March 29: (i) The NRB is no longer requiring banks to build up the 2% countercyclical capital buffer that was due in July 2020; (ii) The NRB temporarily relaxed reporting norms and announced that bank and financial institutions will not be charged or penalized for their non-compliance with regulatory and supervisory requirements in April; (iii) NRB reduced interest rate on the standing liquidity facility from 6% to 5%; (iv) April 29, The NRB directed banks to apply lower interest rates (up to 2 percentage points) when calculating the interest due for the period of mid-April to mid-July, applicable to borrowers from affected sectors.
|02C - Loan guarantees|
|03 - Direct long-term lending info_outline|
|03A - Long-term lending info_outline||
No amount/estimate: May 28, The budget speech for fiscal year 2020/21 includes additional measures in the area of business support (a lending program for cottage, small and medium-sized enterprises and those in the tourism sector) [update].
|03B - Forbearance||
No amount/estimate: April 29, The NRB announced that banks will defer loan repayments due in April and May until mid-July. For working capital loans, banks will extend the repayment schedule of the amount due during the lockdown up to 60 days.
|04 - Equity support info_outline|
|05 - Government support to income/revenue|
|05A - Health||
No amount/estimate: (i) March 30, Health spending will be increased, including by providing additional insurance coverage to all medical personnel fighting the coronavirus, importing additional medical supplies (with duty on said items eliminated), and setting up quarantine centers and temporary hospitals; (ii) May 28, In the budget speech for fiscal year 2020/21, Finance Minister Khatiwada announced additional measures in the area of healthcare (the establishment of additional hospital facilities).
|05B - Non-health||
No amount/estimate: (i) March 30, Social assistance will be strengthened by providing those most vulnerable with daily food rations, subsidizing utility bills for low-usage customers, extending tax-filing deadlines, and taking measures to partially compensate those in the formal sector for lost wages in the event of job loss; (ii) April 26, Informal sector workers who have lost their jobs due to the ongoing crisis will be given the opportunity to participate in public-works projects for a subsistence wage or receive 25% of local daily wage should they choose not to participate; (iii) May 28, The budget speech for fiscal year 2020/21 includes additional measures in the area of job creation (labor intensive in the construction sector, and training for work in manufacturing and service sectors).
|06 - Budget reallocation info_outline|
|07 - Central bank financing government|
|07A - Direct lending & reserve drawdown|
|07B - Secondary purchase: government securities|
|08 - International Assistance Received||NPR132,106,491,125||USD1,159,032,209|
|08A - Swaps info_outline|
|08B - International loans/grants||NPR132,106,491,125||USD1,159,032,209|
|08B1 - Asian Development Bank||NPR28,930,403,600||USD253,820,000||
(i) April, USD2.19 million - TA 9950-REG: Regional Support to Address the Outbreak of COVID-19 and Potential Outbreaks of Other Communicable Diseases; (ii) April 7, USD0.06 milllion TASF - Regional Project Development Support for the South Asia Subregional Economic Cooperation Operational Plan, 2016–2025; (iii) As of June 19, USD0.59 million (Regular OCR) and USD0.02 million (Cofinanced) - Trade Finance Program (Guarantee) [update]; (iv) May 20, USD0.17 million TASF - Regional Support to Address Outbreak of Coronavirus Disease 2019 and Strengthen Health Systems Preparedness for Communicable Diseases in South Asia; (v) May 26, USD250 million (COL) COVID-19 Active Response and Expenditure Support Program; (vi) June 1, USD0.01 million TASF - REG: Evidence-Based and Strategic Country Knowledge Support (Additional Financing) [update]; (vii) June 11, USD0.80 million TASF - Portfolio Management and Capacity Development for Enhanced Portfolio Performance (Additional Financing) [update].
|08B2 - Other||NPR103,176,087,525||USD905,212,209||
(i) April 7, The World Bank has approved a fast-track USD29 million COVID-19 Emergency Response and Health Systems Preparedness Project to help Nepal prevent, detect, and respond to the COVID-19 pandemic and strengthen its public health preparedness; (ii) April 14-Oct 13: IMF Catastrophe Containment And Relief Trust-Grant Assistance For Debt Service Relief, SDR2.852 million (SDR0.729/USD); (iii) May 6, The IMF Executive Board approved the disbursement of USD214 million in emergency financing to help Nepal address urgent balance of payments needs created by COVID-19 under the Rapid Credit Facility; (iv) May 21, USD1 million UN COVID-19 Response & Recovery Fund from UNDP; (v) May, USD7.3 million in total assistance from USAID, which includes USD2.5 million in Economic Support Fund to help local governments and disaster-management committees respond to the economic and social impacts of COVID-19, and will provide small grants to the private sector and civisl society organizations to enable economic recovery, mitigate food insecurity, and address the needs of vulnerable populations. It also includes USD4.8 million for health assistance that is helping the Nepalese Government to conduct community-level risk-communications, prepare laboratory systems, activate case-finding and surveillance, support technical experts for response and preparedness, and more; (vi) June 2, The World Bank approved a USD100 million Development Policy Credit (DPC) to continue support to the Nepal Government in improving the financial viability and governance of the electricity sector and recovering from the COVID-19 crisis; (vii) June 10, The World Bank approved a USD450 million project to help Nepal improve its roads and set the course for post-COVID-19 economic recovery through greater cross-border trade, more jobs, especially for women, and better road safety; (viii) June 24, The Government of Nepal and the World Bank Board signed a USD100 million Development Policy Credit (DPC) to improve the financial viability and governance of the energy sector and recover from the COVID-19 crisis [update].
|09 - International Assistance Provided|
|09A - Swaps info_outline|
|09B - International loans/grants|
|10 - No breakdown|
|11 - Other Economic Measures||
(i) April 1, The NRB imposed a temporary ban on luxury goods imports, such as gold over 10 kg and vehicles worth over USD50 thousand, and will temporarily provide minimum currency exchange facility to qualifying students abroad (less than USD500 per student); (ii) April, Removal of import duty on medical supplies.
|12 - Non-Economic Measures||
April: (i) Closure of cinema halls, stadiums, health clubs, museums, bars and other recreational places through end-April; (ii) Closure of land-border crossings; June: (iii) Nationwide lockdown until June 12; (iv) Ban on domestic and international flights until July 5; (v) The government began easing the lockdown on June 12, allowing shops to open; (vi) Government, private offices, and banks have reopened from June 15, with government staff working in shifts; (vii) Private vehicles are allowed to operate on an alternating odd-even license-plate-number basis, corresponding to the calendar date [update].