ASIA/NEPAL - Debt relief for Nepal: the IMF says "no"

Kathmandu (Agenzia Fides) - The "Jubilee Network" campaign which unites 75 organizations and 400 religious communities around the world, has asked the International Monetary Fund (IMF) advocated for debt relief for Nepal, affected by the terrible earthquake in April. As Fides learns, the IMF has officially given a negative response.
The proposal was to use the special "trust fund" trust fund that helps poor countries when they face natural disasters.
The IMF ’s Relief Trust cancelled nearly $100 million in debt owed by Ebola-impacted West African nations.
"The refusal of the IMF is troubling news for the country", said to Agenzia Fides Eric LeCompte, an executive director of "Jubilee Network". Nepal is one of 38 low-income countries eligible for relief from the new fund. To qualify for that relief after a natural disaster, an eligible country must meet certain criteria: the disaster must impact at least one-third of the country’s population and either destroy 25 percent of the nation’s productive capacity or cause damage equal to the size of the country’s economy. According to IMF, Nepal met the first condition but the earthquake did not cause enough total economic damage. Nepal’s earthquake and its aftershocks caused $5-10 billion in damage, about one-third of the country’s total economy.
Eric LeCompte emphasizes that the special fund "was created for situations just like this", recalling that the IMF, the World Bank and the Asian Development Bank who hold about $3 billion of Nepal’s debt have unfortunately not announced any debt relief plans yet.
"Jubilee USA Network" is an alliance of over 75 organizations and 400 religious communities working with 50 partners in the world, committed to building an economy that protects and promotes the participation of the most vulnerable. (PA) (Agenzia Fides 27/06/2015)