KATHMANDU, August 23: The International Monetary Fund (IMF) has suspended the second installment amount of its credit volume committed to Nepal, raising its concern over the authenticity of the financial audit of Nepal Rastra Bank (NRB).
The IMF has been demanding to carry out the financial audit of NRB by an internationally authorized audit firm. As of now, NRB’s audit is done by the Office of the Auditor General.
Revised interest rate corridor system introduced
On December 22, 2021, the IMF pledged to provide Nepal with the interest-free credit of US $78.5 million. Out of the amount, Nepal is yet to receive US $39.2 million, according to an NRB official.
The IMF, which is in the performance review process of the country’s central bank, has called for policy reform in the Nepali system. Although the government has initiated a move for policy reform in the central bank and the country’s financial system, the IMF has expressed its dissatisfaction over the ‘pretty slow process of the government authorities’.
Previously, in April, the watchdog organization of the international financial system had expressed its concern over the government’s move to suspend NRB Governor Maha Prasad Adhikari.
