The IMF Executive Board meeting on Wednesday decided to extend the deadline by two months.
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Nepal has been granted two months to fulfill the remaining conditions of the Extended Credit Facility (ECF) it received from the International Monetary Fund (IMF). The IMF Executive Board meeting on Wednesday decided to extend the deadline by two months.
At the request of the Nepalese government, the IMF has decided to extend the period of the Extended Credit Facility (ECF) program by two months to July 11, 2026, according to a statement issued by the IMF. After the remaining conditions are fulfilled, sufficient time will be provided to complete the seventh and final review under the ECF program.
Although the statement did not mention what conditions Nepal has yet to fulfill, the IMF has stated that some work remains to be done in the financial sector, mainly on the autonomy of the National Bank, classification of loans, etc.
The 38-month ECF program was approved by the IMF Executive Board on January 12, 2022. Under that program, Nepal was receiving a concessional loan facility worth SDR 282.42 million (180 percent of the quota). The last (seventh) installment of the facility, which is divided into seven installments, is yet to be paid. Before that installment is paid, the IMF has asked for the remaining initial conditions to be met.
Later, on May 1, 2023, the IMF Board rescheduled the disbursement schedule without increasing further access to credit and extended the duration of the program until January 11, 2026. Then, on December 1, 2025, the program was again extended until May 11, 2026 without further access.
