Nepal earthquake: Monetary assistance pouring in as Nepal seeks $6.6bn for reconstruction

Billions of dollars in funding from multiple sources was announced for the reconstruction of quake-hit Nepal, as world leaders gather in Kathmandu around Nepal's request for $6.6bn (£4.3bn, €6bn) for its economy.

Nepal's neighbour India has so far been the biggest helper, after Asia's third-largest economy announced a $1bn assistance package in grant and soft loans to the country, which suffered from a series of devastating earthquakes. India's External Affairs Minister Sushma Swaraj announced the funding, while addressing the International Conference on Nepal's Reconstruction being held in Nepal's capital.

Chinese Foreign Minister Wang Yi pledged to extend more than $700m in grant and loans, while Japan announced $260m during the international donor conference.

US Ambassador to Nepal, Peter Bodde, announced a $200m funding, while the Asian Development Bank has pledged support of $600m. The European Union pledged an additional support of €100m as grant assistance.

Australia said it will give a further $6m for the reconstruction of Nepal, bringing its total contribution to the cause to more than $28m. Likewise, Norway has announced $30m.

United Nations Secretary-General Ban Ki-moon is attending the 25 June negotiations where Nepal's $3.8bn debt is on the table as part of an earthquake recovery package. Nepal spends $600,000 a day servicing debt, or more than $35m since the first April earthquake.‎

Nepal owes $54m to the International Monetary Fund (IMF), which created the Catastrophe Containment and Relief Trust to relieve debt payments of countries hit by natural disasters. If Nepal qualifies for the trust, it could receive $23m in debt relief.

Nepal owes $1.5bn to the Asian Development Bank and another $1.5bn to the World Bank.

"Nepal is requesting relief from some debt payments as a portion of the aid plan," said Eric LeCompte, executive director of the religious development organisation Jubilee USA Network.

"Nepal's government is being too careful to call for total debt cancellation because of misplaced worries that they'll scare off investors."

Nepal was one of the world's poorest countries before the earthquake struck, ranking 145th out of 187 countries on the United Nations development index. The Nepali government estimates that the earthquake pushed an additional one million Nepalis below the poverty line. The quakes killed more than 8,600 people and destroyed over 500,000 homes, 8,000 schools and 1,023 health centres.