WASHINGTON: The United Nations` climate loss and damage fund moved on Thursday to provide $20 million in aid sought by flood-stricken Nepal, the first time it has set aside money for any country, in a key test of the body`s credibility.

In an extraordinary meeting, the fund`s board agreed to earmark the modest sum for the Himalayan country, which was hit in August by tsunami-like floods triggered by a climate-induced ice and rock avalanche that killed more than 1,400 people and left over 5,000 missing.

Camila Minerva Rodriguez Tavarez, theDominican co-chair of the board, called the outcome `truly historic` and thanked members for `allowing us to act promptly and have a response to Nepal.

Reacting to the news, Nepal`s finance minister Swarnim Wagle said: `The fact that they could convene this emergency meeting in response to our letter and commit $20 million of grant money is very welcome.` The decision does not, however, mean that Nepal will immediately receive the funding, which amounts to less than 0.5 percent of the government`s $4.78 billion estimate for reconstruction.-AFP