Nepal is among 28 countries to receive a debt service relief amounting to Euro 4.299 million (approximately Rs 582 million) through a European Union contribution of Euro 183 million to the Catastrophe Containment Relief Trust (CCRT) set up by the International Monetary Fund (IMF), the EU Delegation to Nepal informs.

The CCRT aims to provide debt service relief on instances of disasters and catastrophes to the poorest and most vulnerable countries.

“We are happy to share the good news and believe that the debt relief will create a fiscal space enabling Nepal to move to a green, resilient and inclusive recovery from the Covid-19 pandemic,” the EU Ambassador to Nepal, Nona Deprez, said in the statement.

Ambassador Deprez said the debt relief for Nepal is in line with the European Commission President Ursula von der Leyen’s Global Recovery Initiative, which called for linking investments and debt relief to the SDGs.

“Through this contribution, Team Europe continues to stand in solidarity with its most vulnerable partners,” Jutta Urpilainen, European Commissioner for International Partnerships, has been quoted in the statement, “In this difficult period, the resources freed up can provide social services for the most vulnerable people, such as access to essential healthcare and education for young people, including girls.”

The European Union says alongside the development partners community, it has been supporting Nepal in its green, resilient and inclusive recovery from the adverse impacts of the pandemic.