The International Monetary Fund has extended Nepal’s Extended Credit Facility (ECF) program by an additional two months, allowing more time to complete the seventh and final review of the program.
In a statement issued on Wednesday, the IMF Executive Board confirmed that the ECF arrangement for Nepal will now remain effective until July 11, 2026. The 38-month program was originally approved on January 12, 2022, providing Nepal access to 180 percent of its Special Drawing Rights (SDR) quota, equivalent to approximately US$282.42 million.
This is not the first extension granted under the arrangement. In December 2025, the IMF extended the ECF timeline by four months. Earlier, on May 1, 2023, the organization approved another extension until January 11, 2026, along with a revised disbursement schedule.
Through the ECF program, Nepal committed to maintaining financial stability, strengthening foreign exchange reserves, improving public finance management, and advancing broader economic reforms with IMF support.
As part of the conditions tied to the final installment of the program, the government completed external audits of 10 major commercial banks around six months ago.
The IMF’s support program was designed around three major objectives aligned with the government’s Relief, Restructuring, and Resilience (3R) plan. The first objective focused on reducing the impact of the COVID-19 pandemic on public health and economic activity while protecting vulnerable communities through increased spending on healthcare, social assistance, and employment support, alongside stronger fiscal transparency and governance.
The second objective emphasized preserving macroeconomic and financial stability through prudent fiscal policies, adequate foreign exchange reserves, and stronger regulation and supervision of the financial sector.
The third objective aimed to promote sustainable economic growth and poverty reduction over the medium term by implementing institutional reforms that strengthen governance and reduce corruption risks.
