IMF dissatisfied over current audit reporting of NRB


August 24, 2022


IMF dissatisfied over current audit reporting of NRB

Representative image.

KATHMANDU: The International Monetary Fund (IMF) has stopped the second tranche of its loan commitment to Nepal.

It has demanded that the audit of Nepal Rastra Bank should be done by an international audit firm, raising questions over the audit report of the Central Bank.

The Office of the Auditor General has been dealing with the audit of the Nepal Rastra Bank.

The government has also started the process to hire an international level audit firm to prepare the audit report of Nepal Rastra Bank after the IMF put brakes on loans to Nepal.

The IMF had pledged to provide Nepal with the interest-free credit of US $78.5 million on December 22, 2022. Out of the amount, Nepal is yet to receive US $39.2 million, according to an NRB official.

Narayan Pokharel, assistant spokesperson at the Nepal Rastra Bank, said that the IMF is yet to provide the second tranche of USD 39.2 million to Nepal.

The IMF has committed to provide the amount under the Extended Credit Facility (ECF).

The government can spend this amount based on its needs.

The Nepal government had agreed to provide USD 398. 8 million in 38 months.

Nepal will get this amount in seven installments.

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’.