Nepal

(i) 29 March 2020, The NRB reduced interest rate on the standing liquidity facility from 6% to 5%; (ii) 29 April 2020, 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; (iii) The policy rate or repo rate was cut by 100 basis points to 3.5%. 17 July 2020, The repo rate was further cut by 50 basis points to 3%.

No amount/estimate: 29 March 2020: (i) The NRB is no longer requiring banks to build up the 2% countercyclical capital buffer as provisioned under Capital Adequacy Framework 2015 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) 17 July 2020, The limit on the loan-to-value ratio for personal residential home loans was raised to 60% and margin natured loans to 70% from 65%. The limit on banks’ total loans was raised to 85% of the sum of core credit and deposits from 80%. The NRB requires banks to increase their loans to priority sectors, such as agriculture, energy, tourism, and micro, small and mid-size enterprises, to 40% from 25% by 2024; (iv) 26 May 2021, The NRB has increased the limits of the refinance amount to five folds citing uplifting of the small and medium industries and has simplified the procedure for refinance facilities to increase access of small and medium industries .

No amount/estimate: 30 March 2020, Tax-filing deadlines are extended.

No amount/estimate: (i) 30 March 2020, Social assistance will be strengthened by providing those most vulnerable with daily food rations and by subsidizing utility bills for low-usage customers and taking measures to partially compensate those in the formal sector for lost wages in the event of job loss; (ii) 26 April 2020, 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 food worth 25% of local daily wage should they choose not to participate; (iii) 28 May 2020, 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). Some specific measures include (a) Daily wagers in the informal sector who choose not to be included in either food-for-work or cash-for-work modalities will still be entitled to food worth one-fourth of minimum wage receivable; (b) Electricity bills will be completely waived for households consuming up to 10 units per month; a 25% discount on electricity bills for households consuming up to 150 units of electricity per month; and a 15% discount on electricity bills for households consuming up to 250 units per month; (c) Government to deposit employer and employees’ social security contribution to SSF during the period of nationwide lockdown; (d) Prime Minister Employment Program will be further expanded across all three tiers of governments. Under this program, an additional 200,000 jobs will be generated; (e) An additional 40,000 jobs will be generated through Small Farmers’ Credit Program operated via Small Farmers’ Development Micro Finance Institutions.

No amount/estimate: 28 May 2020, The budget speech for fiscal year 2020/21 includes electricity demand charge during the nationwide lockdown to be waived for industries affected by COVID-19 pandemic; industries will be entitled to a 50% discount on electricity bills during low demand.

No amount/estimate: 28 May 2020, The budget speech for fiscal year 2020/21 includes skill enhancement training programs to be launched at federal and provincial levels so that Nepali workers can fill in employment opportunities created with the departure of foreign migrant workers due to COVID-19 pandemic. It is expected that this initiative will generate an additional 50,000 jobs.

29 April 2021, The government has provided interest subsidy of NPR5.63 billion till mid-April under the concessional interest subsidy with 77,196 borrowers benefitting from it .

(i) April 2020, USD2.19 million - TA 9950-REG: Regional Support to Address the Outbreak of COVID-19 and Potential Outbreaks of Other Communicable Diseases. As of 29 January 2021, the amount increased to USD2.37 million; (ii) 7 April 2020, USD0.06 milllion TASF - Regional Project Development Support for the South Asia Subregional Economic Cooperation Operational Plan, 2016–2025; (iii) As of 19 June 2020, USD1.97 million (Regular OCR) and USD0.02 million (Cofinanced) - Trade Finance Program (Guarantee). As of 12 February 2021, the amounts decreased to USD1.03 million (Regular OCR) and USD0.17 million (Cofinanced); (iv) 20 May 2020, USD0.35 million TASF - Regional Support to Address Outbreak of Coronavirus Disease 2019 and Strengthen Health Systems Preparedness for Communicable Diseases in South Asia; (v) 26 May 2020, USD250 million (COL) COVID-19 Active Response and Expenditure Support Program; (vi) 11 June 2020, USD0.80 million TASF - Portfolio Management and Capacity Development for Enhanced Portfolio Performance (Additional Financing); (vii) 29 June 2020, USD3 million COVID-19 Emergency Response under the Asia Pacific Disaster Response Fund; (viii) 24 July 2020, USD0.21 million (TASF) Due Diligence and Capacity Development of Trade Finance Program Banks (Subproject 3); (ix) 4 September 2020, USD0.13 million TASF - Enhancing Gender Quality Results of South Asia COVID-19 Response; (x) 9 September 2020, USD0.13 million TASF - Strengthening the Enabling Environment for Disaster Risk Financing. (xi) 30 June 2021, USD5 for Prevention and Control of COVID-19 through WASH and Health initiatives in Secondary and Small Towns, confinacing with JFPR. (xii) 22 July 2021, USD165 million for "Responsive COVID-19 Vaccines for Recovery Project Under the Asia Pacific Vaccine Access Facility". (xiii) 22 September 2021, USD0.06 million technical assistance under "Fostering Regional Cooperation and Integration throughKnowledge and Capacity Building of Trade and Supply Chain Finance Program Banks".

(i) 7 April 2020, 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. 18 March 2021, USD75 million additional funding to support access to safe and effective COVID-19 vaccines and equitable vaccine distribution by strengthening Nepal’s health and vaccination system (signed on 2 April 2021 by the Government of Nepal and the World Bank); (ii) 14 April - 13 Oct 2020: IMF Catastrophe Containment and Relief Trust (1st Tranche) - grant assistance for debt service relief, SDR2.852 million (SDR0.729/USD = USD3.9 million). 2 October 2020, IMF Catastrophe Containment and Relief Trust (2nd Tranche) - grant assistance for debt service relief, USD5.03 million. 5 April 2021, IMF Catastrophe Containment Relief Trust (3rd Tranche) - USD5.06 million; (iii) 6 May 2020, 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) 21 May 2020, USD1 million UN COVID-19 Response & Recovery Fund from UNDP; (v) 29 May 2020, 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 civil 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. As of 13 May 2021, US assistance through USAID has reached USD50.9 million of which USD5.8 Million has enabled the Department of Defense (DOD) to purchase PPE, breathing devices, isolation and disaster camp equipment and supplies, telemedicine equipment, COVID-19 testing supplies, handwashing stations, and medical equipment for health clinics. The DOD also announced an additional USD2.75 million in emergency funding that will provide oxygen cylinders and liquid oxygen storage tanks ; (vi) 2 June 2020, The World Bank Board approved a USD100 million Development Policy Credit (DPC) to continue support to the government in improving the financial viability and governance of the electricity sector and recovering from the COVID-19 crisis; 24 June 2020, The USD100 million DPC was signed by the World Bank and the government; (vii) 10 June 2020, 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; On 17 July 2020, The government and the World Bank signed the USD450 million Financing Agreement; (viii) 4 September 2020, The Government of Nepal and the World Bank signed a financing agreement for an additional grant of USD10.85 million to the School Sector Development Program (SSDP) to maintain access to basic education and continued learning for children amid the COVID-19 crisis; (ix) 17 September 2020, The World Bank approved a USD200 million “Finance for Growth” development policy credit to spur COVID-19 resilience and recovery efforts; (x) 28 September 2020, The World Bank approved a USD150 million project to help Nepal strengthen service delivery and institutional capacities in strategic secondary cities, and to support the post-COVID-19 economic recovery; (xi) 28 October 2020, World Bank approves USD80 million Rural Enterprise and Economic Development Project to boost Nepal’s agriculture sector and support post-pandemic recovery. 21 December 2020, the Government of Nepal and the World Bank signed a USD80 million (around NPR 9.3 billion) million project to bolster Nepal’s agriculture sector by strengthening rural market linkages and promoting entrepreneurship while creating jobs to support post-COVID-19 recovery; (xii) 30 October 2020, The European Commission is providing EUR2 million (USD2.2 million) in humanitarian aid for Nepal and countries in the Southeast Asia to support those affected by the pandemic, natural disasters, and the consequences of man-made conflicts; (xiii) 27 January 2021, The Government of Nepal and the World Bank jointly launched the USD150 million Nepal Urban Governance and Infrastructure Project to promote sustainable urban development and support post-COVID-19 economic recovery in strategic secondary cities; (xiv) 3 March 2021, The Ministry of Health and Population (MoHP) received NRP30 million worth of Personal Protective Equipment (PPE), examination gloves, surgical mask and Inter-Agency Reproductive Health (IARH) kits from the United Nations Population Fund (UNFPA). The financial support is from the People's Republic of China (PRC) under the existing south-south partnership initiative between Nepal, PRC and UNFPA; (xv) 12 May 2021, The EU has mobilized EUR2 million in humanitarian funding to help contain the explosion in COVID-19 cases in Nepal ; (xvi) 21 May 2021, The United Nations and partners launched the Nepal Covid-19 Response Plan calling for USD83.7 million to mobilize an emergency response over the next three months to assist 750,000 of the most vulnerable people affected by the pandemic .; (xvii) 27 May 2021, China to gift 1 million COVID-19 vaccine doses to Nepal. ; (xviii) 16 June 2021, USD150 million from World Bank to support Nepal's Pandemic response and recovery.; (xix) 8 July 2021, USD100 million additional financing from World Bank to support the implementation of the government’s flagship School Sector Development Program, and improve efficiency in the public resource management systems of Nepal’s health sector. (xx) 19 October 2021, China has decided to donate additional two million Vero cell vaccines to Nepal.