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Nepal faces a debt crisis due to several factors: (1) It has a large trade imbalance with imports far exceeding exports, which drains money from the country. (2) Rising household and government debt levels create a cycle where more debt is needed to pay existing debt. (3) Loss of donor confidence from corruption and inability to efficiently manage projects has increased interest rates on loans. (4) Existing loans are improperly managed, causing cost overruns and delays that increase total debt. (5) Inflexib

Author

Sudarshan Gautam

Language

EN