On April 25, 2015 at 11:56 am (Nepal Standard Time), Nepal was struck by the Great Earthquake. According to the United States Geological Survey, the magnitude of the earthquake was 7.8 on the Richter scale, and the epicenter of the earthquake was 34 km east-southeast of Lamjung district in Nepal. Following the main shock of April 25, more than 50 aftershocks have already occurred, with the magnitude ranging from 3.9 to 6.7.  

Human loss

According to the latest police report , the death toll had reached  6261, with about 13861 injured. The United Nations put the number of people affected by the earthquake at eight million: more than one fourth of the population.

Cultural loss

Preliminary data from the Department of Archaeology, Government of Nepal, shows that  a total of 57 monuments of the Kathmandu Valley have been destroyed. Many foreigners that visit the Kathmandu valley come to see these internationally recognized monuments . The cultural loss will have a huge negative impact on the tourism sector which contributes 2 percent to Gross Domestic Product and provides direct employment to 178,000 persons (Economic Survey of Government of Nepal, 2013/2014).

Economic loss

There is no official data yet on the actual economic loss from the Earthquake. According to the United Nations, around 70,000 houses have been destroyed and 530,000 houses have been damaged. Nepal police put the number of physical structures destroyed or damaged at 62831. The United States Geological Survey reports estimated economic losses from the earthquake to exceed the Gross Domestic Product of Nepal (preliminary real Gross Domestic Product for fiscal year 2013/2014 is 734.219 billion).

Debt situation

According to the official source of Government of Nepal, the total external debt as on January 14, 2015 was  NRs 337.44 billion (1 US Dollar= 101.62 NRs). Of the total external debt, Nepal owes NRs 142.46 billion (42.22 percent) to the Asian Development Bank and NRs 148.975 billion (44.15 percent) to the International Development Association (the World Bank). As far as debt servicing is concerned, Nepal spent NRs 8.59 billion for the principal repayment and NRs 1.57 billion for the interest repayment during the second quarter of fiscal year 2014/2015 (October 18 to January 14, 2015).

Financial assistance

Many donors have already pledged financial assistance to Nepal. According to the Office for the Coordination of Humanitarian Affairs Financial Tracking Service, US $ 59 million has been pledged by countries and foundations.

Why debt cancellation?

Much of the pledged financial assistance is aimed at immediate recovery from earthquake. However, Nepal needs massive money for reconstruction activity in public infrastructure, monuments, and residential housing. Debt cancellation could free up government funds for these activities. Given that Nepal owes 86.60 percent of the total external debt to the Asian Development Bank and the World Bank , these organizations should initiate efforts towards debt cancellation. While creditor like the International Monetary Fund has already such provision in place for low-income countries experiencing catastrophic natural disasters, the Asian Development Bank and the World Bank do not have such provision yet. This petition is a serious call for these organizations to start working on Nepal's debt cancellation. Please sign this petition, and let the Asian Development Bank and the World Bank know that you want them to cancel Nepal's debt.