Nepal: Request for Disbursement Under the Rapid Credit Facility - Staff Report; Press Release; and Statement by the Executive Director for Nepal

A powerful earthquake hit Nepal on April 25. Over 8,800 lives were lost and damages and losses are estimated at US$7 billion or nearly one third of GDP. Reconstruction of housing, government buildings and infrastructure will open fiscal and balance of payments gaps in the coming years. Before the earthquake, Nepal's macroeconomic performance was broadly favorable but the government's weak budget implementation capacity held back growth and propped up the external position.