IMF approves two-month extension of Nepal's ECF arrangement

WASHINGTON, DC: The International Monetary Fund’s Executive Board has approved a two-month extension of Nepal’s Extended Credit Facility (ECF) arrangement, the IMF said on Wednesday. The move sets the programme’s new expiry date at July 11, 2026.

The short extension was granted to allow 'sufficient time for the completion of the seventh and final review of the ECF arrangement,' the IMF said. The decision was taken on a lapse-of-time basis, meaning the Board approved the proposal without convening formal discussions.

The 38-month ECF arrangement was originally approved on January 12, 2022, with access of SDR 282.42 million, equivalent to 180% of Nepal’s quota. The programme has been extended several times: on May 1, 2023, the Board approved an extension to January 11, 2026, with a rephasing of disbursements but no additional access; and on December 1, 2025, it approved a further extension to May 11, 2026, without additional access.

The latest two-month extension is intended to give Nepali authorities and IMF staff the time needed to complete the final review under the arrangement and to finalise any remaining policy and technical discussions tied to programme performance and disbursement.

The IMF did not announce any change to the total access under the ECF as part of this extension.