KATHMANDU, June 7: The International Monetary Fund (IMF) has approved the release of an additional Rs 6.5 billion (approximately US $42.9 million) to Nepal following the successful completion of the seventh and final review of the Extended Credit Facility (ECF).
Citing a notable progress that Nepal has made in implementing structural and governance reforms, the IMF has decided to release the final amount under the ECF. Improvements in these areas are expected to directly aid economic recovery, maintain financial stability, and protect vulnerable sectors of Nepal.
IMF Executive Board approves USD 395.9 million Extended Credit...
According to the IMF, its executive board meeting held on Saturday approved the Nepali authorities’ request for a two-month extension of the Extended Credit Facility (ECF) arrangement until July 11, 2026, to allow sufficient time for the completion of the seventh and final review of the ECF arrangement.
The 38-month ECF arrangement was first approved by the IMF Executive Board on January 12, 2022, with access of SDR 282.42 million (180 percent of quota). An extension of the ECF arrangement to January 11, 2026 with rephasing of disbursements without additional access was approved by the Executive Board on May 1, 2023. An extension of the ECF arrangement to May 11, 2026 without additional access was approved by the Executive Board on December 1, 2025
Key achievements that the IMF has highlighted for Nepal include the modernization of monetary operations, enhanced financial regulation, thorough loan portfolio reviews, stronger anti-money laundering frameworks, and improved accountability across public enterprises, all of which will help ease the country’s public financial management moving forward. The IMF has projected Nepal’s economic growth to stay at three percent for the next fiscal year.
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