April 29: The European Union (EU) is all set to provide an aid package of Rs 9.8 billion to Nepal to tackle the outbreak of the coronavirus pandemic and mitigate its impacts, the national news agency RSS reported.

According to RSS, the support includes redirected existing commitments with new funds.

The EU said in a statement that the Government of Nepal can  have direct and swift access to this financing.    
The EU’s support will be focused on two areas. Firstly, it will be assisting the authorities in Nepal to respond to the immediate health crisis and secondly to boost the country’s economic response and recovery.

The EU will provide Rs 1.6 billion to support the government’s health and preparedness plan, according to RSS.

“These funds are being made available either by topping up resources for already existing projects on the health sector, or by reorienting resources to other projects that would integrate health related activities and crisis response, including tackling gender based violence,” RSS reported citing the EU.    
Meanwhile, Rs 8.2 billion will support the government’s response to the social and economic consequences of the pandemic.

While the government’s strict measures to trace, isolate and treat the virus have so far helped to contain the health crisis, such measures will have a negative economic impact, the EU noted.

By stimulating the economy and labour demand, through support to people’s incomes, employment retention and the extension of social protection programmes that assist the most vulnerable, the European Union said in the statement issued on Monday that it hopes to assist the government’s economic recovery plan.