The IMF created the new Catastrophe Containment and Relief Trust (CCR) in February to provide debt relief to poor countries impacted by natural disasters or health crises. The new fund cancelled nearly $100 million in debt for Ebola-impacted countries.
Nepal, which has been struck by a 7.8 magnitude earthquake is one of the least developed countries in the world, ranking 145th out of 187 countries in the United Nations Human Development Index. The country owes $3.8 billion in debt to foreign lenders and spent $217 million repaying debt in 2013.
“Nepal could qualify for immediate relief. Nepal’s earthquake is why the IMF created a new rapid response relief fund,” LeCompte, the Executive Director of the religious development coalition, Jubilee USA Network was quoted as saying in a press release issued by the group in Washington DC and copied to ghanabusinessnews.com.
The earthquake has killed more than 4,800 people and it is feared the death toll could reach 10,000. It caused avalanches on Mount Everest and destroyed buildings across the capital city of Kathmandu.
By Emmanuel K. Dogbevi