IMF lauds strong external accounts, fiscal position

KATHMANDU, NOV 24 -

International Monetary Fund (IMF) Deputy Managing Director Naoyuki Shinohara has commended Nepali authorities’ work for maintaining strong external accounts and a strong fiscal position.

Shinohara, who was in Kathmandu to take part in the 49th SEACEN Governors’ Conference, said the IMF also supports Nepali authorities in their efforts to improve regulation and supervision to ensure financial stability while expanding access to financial services.

According to Shinohara, the upcoming assessment under the Financial Sector Assessment Program (FSAP), which the IMF and the World Bank will conduct jointly, will contribute to mapping out further reform steps.

During his stay in Kathmandu, Shinohara met President Ram Baran Yadav, Finance Minister Shankar Koirala and Nepal Rastra Bank Governor Yuba Raj Khatiwada, among others.

Shinohara said his discussions with the Nepali authorities focused on how to accelerate and sustain growth, and ensure macroeconomic and financial stability.

“In terms of macroeconomic management, some tightening of liquidity conditions is needed to guard against risks of rising inflation and reduce inflation expectations. Fiscal policies have been prudent, and revenues have been rising strongly, thanks to the authorities’ efforts at improving tax administration. In addition, Nepal’s peg to the Indian rupee has served as a valuable anchor for macroeconomic policies,” Shinohara said in a statement.

“The progress made by the Nepalese authorities in achieving the Millennium Development Goals is also laudable, particularly on poverty reduction and on health and sanitation,” he said in a press statement at the conclusion of his visit,” he added. “The IMF will continue to support the authorities through policy advice and technical assistance in their work to maintain stability and accelerate growth.”

Source: The Kathmandu Post