IMF Approves Extension of ECF Arrangement with Nepal by Four Months

The International Monetary Fund (IMF) on Tuesday, December 9, said in a statement that its Executive Board on December 1 approved the Nepali authorities’ request for a four-month extension of the Extended Credit Facility (ECF) arrangement until May 11, 2026, to allow sufficient time for completing the seventh review of the arrangement.

The 38-month ECF arrangement was approved by the Executive Board on January 12, 2022, with access of SDR 282.42 million. “An extension of the ECF arrangement to January 11, 2026 with rephasing of disbursements was approved by the Executive Board on May 1, 2023,” read the statement.

Earlier this year in October, the IMF’s Executive Board approved a disbursement of $43.05 million to Nepal following the completion of the sixth review.

In a statement issued on October 2, the IMF said the review was completed on October 1, enabling Nepal to withdraw SDR 31.4 million (about $43.05 million). That brought total disbursements for budget support under the facility to SDR 251.1 million (about $341.2 million).