Kathmandu: The International Monetary Fund (IMF) has approved $42.7 million (approximately Rs 5.84 billion) for Nepal under the sixth installment of the Extended Credit Facility (ECF), citing satisfactory progress in the implementation of the program.
An IMF mission led by Sarwat Jahan visited Kathmandu from May 26 to June 10, holding discussions with Nepali officials. A staff-level agreement was reached on key policies and reforms necessary to complete the sixth review under the ECF.
The agreement remains subject to approval by the IMF Executive Board.
Upon formal approval, the latest disbursement will bring the total IMF support under the ECF to $331.8 million.
Nepal entered the ECF arrangement in 2022, following a sharp decline in foreign exchange reserves and a weakened balance of payments.
The total ECF arrangement amounts to $395.9 million, equivalent to 180 percent of Nepal’s quota under the IMF’s Special Drawing Rights (SDR), to be disbursed in several tranches over four years.
Following the fifth review, Nepal received approximately $41.8 million (Rs 5.81 billion). The IMF has also urged Nepal to maintain vigilance in strengthening anti-money laundering and counter-financing of terrorism (AML/CFT) measures, especially after being placed on the Financial Action Task Force (FATF) grey list.
Regulatory reforms in this area remain a priority, the IMF stated.