CPN-UML Vice-chairman Surendra Pandey has warned that refusing to ratify the Millennium Challenge Corporation (MCC) Compact can invite economic crisis for Nepal.
Adddressing an interaction program organized by the Economics Department of the Tribhuvan University on Friday Pandey, who is also a former finance minister, said Nepal can be in trouble if America were to get angry about Nepal's refusal to accept the US$ 500 million grant leading to refusal by other powerful countries to provide financial assistance to us.
Pointing that America has close relations with the countries that send the highest amount in remittance to Nepal he argued that Nepal can face problems if America were to complain to those countries about Nepal. He urged the department to study about such possible risks.
"What this means is the World Bank, the Asian Development Bank provide certain assistance when I look now. They are increasing that now in comparison to the past. The International Monetary Fund has also given us loan of (almost) US$ 400 million a few days back. We recently received Rs 48 billion. That is helping us balance the pressure on foreign currency to some extent," Pandey stated.
"But if all that does not have anything to do with not accepting Rs 55 billion (from MCC), nothing will happen even if we don’t take. There is no question if they say you didn't receive so we won't give, and take that money and distribute elsewhere in an easy manner. That will not lead to any big loss. But if they get miffed at a country like Nepal refusing to accept its grant, you should understand that we will enter toward crisis and risks," he explained.
He also stressed on the need for the country's leadership to display foresight to avoid that. "We can take the country forward if we can show leadership capacity in time. It seems the country can plunge into crisis otherwise."
