Nepal: Fifth Review Under the Extended Credit Facility Arrangement and Request for Modification of a Performance Criterion-Press Release; Staff Report; and Statement by the Executive Director for Nepal

International Monetary Fund

No 2025/066, IMF Staff Country Reports from International Monetary Fund

Abstract: Political uncertainty remains high with another change of government in July 2024—the fifth since the beginning of the Fund-supported program. Substantial flooding and landslides in September 2024 further weighed on sluggish domestic demand, though conversely helping strengthen the external position and easing inflation pressures. Non-performing loans have risen, bank profitability has weakened, and the financial health of savings and credit cooperatives (SACCOs) has deteriorated. Growth is expected to pick up to 4.2 percent in FY2024/25, supported by further expansion in hydropower generation and a higher execution rate of public capital expenditure, including on post-flood reconstruction. Average inflation is expected to remain close to the authorities’ target of about 5 percent.

Keywords: staff appraisal; issuance of the Request for Proposals; implementation of the prior action; Nepali authorities; ECF arrangement; Credit; Anti-money laundering and combating the financing of terrorism (AML/CFT); Financial statements; Global (search for similar items in EconPapers)
Pages: 96
Date: 2025-03-18
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