Washington, Dec 9 (SocialNews.XYZ) The International Monetary Fund has approved Nepal’s request for a four-month extension of its ongoing Extended Credit Facility (ECF) arrangement, allowing Kathmandu additional time to complete the programme’s next review.
In a statement issued in Washington, the IMF said its Executive Board on December 1 cleared “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 ECF arrangement.”
The Fund noted that the current 38-month ECF arrangement was originally approved on January 12, 2022, “with access of SDR 282.42 million (180 per cent of quota)” A previous extension of the programme, running through January 11, 2026, was approved on May 1, 2023, together with a rephasing of disbursements.
The latest decision was taken by the IMF Executive Board “on a lapse-of-time basis,” a procedure used “when a proposal can be considered without convening formal discussions.”
The ECF is the IMF’s principal concessional lending instrument for low-income countries, providing financial support alongside economic reform commitments. Nepal has used the facility in recent years to stabilise its economy following the pandemic, strengthen fiscal management, and rebuild external buffers.
Multilateral support has remained a critical pillar of Nepal’s external financing. The ECF extension comes as the Himalayan nation continues to navigate pressures from slower global growth, fluctuating remittances, and the need for sustained capital investment.
Source: IANS
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