IMF Extends Nepal’s ECF Program by Four Months to Allow Completion of Final Review

The International Monetary Fund (IMF) has approved a four-month extension of Nepal’s ongoing Extended Credit Facility (ECF) program, giving the country additional time to complete the final review of the multi-year reform and financial-support arrangement. With this decision, the program will now run until May 11, 2026.

According to a statement issued after the IMF Executive Board meeting held on December 1 (Mangsir 15), Nepal had formally requested an extension, citing the need for adequate time to fulfill the requirements required for the seventh and final review. The Board endorsed the request, ensuring that the program winds down smoothly and that pending assessments can be completed without haste.

Nepal’s ECF arrangement began on January 12, 2022, after the IMF approved a 38-month support package aimed at helping stabilize the economy in the aftermath of COVID-19. Under the facility, Nepal was allocated SDR 282.4 million—equivalent to USD 395.9 million or roughly NPR 57 billion at current exchange rates. The final tranche under this loan arrangement is still awaiting disbursement.

This is not the first time the program has been extended. On May 1, 2023, the IMF had already prolonged the ECF until January 11, 2026, acknowledging Nepal’s economic challenges that deepened after the pandemic. The program’s objectives included supporting macroeconomic stability, safeguarding financial resilience, and protecting vulnerable populations facing heightened economic risks.

As the program approached its concluding stages, a high-level IMF delegation led by Dr. Krishna Srinivasan, Director of the IMF’s Asia and Pacific Department, visited Nepal recently. The mission held discussions with senior government officials, assessing the progress of economic reforms and evaluating policy priorities required for the forthcoming review.

With the extension now in place, Nepal has a clearer pathway to complete its remaining commitments under the ECF, paving the way for the final tranche and concluding the program with full compliance.