The International Monetary Fund (IMF) has extended the duration of Nepal’s Extended Credit Facility (ECF) program by four months.
In a press release, the IMF stated that its Executive Board has approved the Nepali government’s request to extend the ECF until May 11, 2026, allowing more time to complete the program’s seventh review. The 38-month ECF arrangement was originally approved on January 12, 2022, with access to SDR 282.42 million—equivalent to 180 percent of Nepal’s quota.
The ECF support was introduced during the COVID-19 crisis to help Nepal mitigate the pandemic’s impact on public health and the economy, protect vulnerable communities, maintain macroeconomic stability, and advance reforms aimed at sustainable growth and poverty reduction.
Key policy actions under the facility include improving revenue generation and public spending efficiency, strengthening financial regulation and supervision, enhancing fiscal transparency, and promoting good governance and anti-corruption measures. As part of the program, Nepal Rastra Bank has also been conducting external audits of 10 major commercial banks.
Previously, on May 1, 2023, the IMF had already extended the ECF timeline to January 11, 2026, with rephased disbursements. Nepal is yet to receive the final installment of the approved funds.
