KATHMANDU: The International Monetary Fund (IMF) will provide approximately USD 41.3 million (Rs 5.53 billion based on the latest exchange rate) to Nepal as the fourth installment under the four-year Extended Credit Facility (ECF). This decision follows the completion of the fourth review by the IMF Executive Board.

During the COVID-19 pandemic, the IMF Executive Board approved a concessional loan of USD 398.8 million (Rs 53.8 billion) to Nepal. The amount to be provided with this installment is part of that loan.

Before disbursing each tranche of the extended credit facility, the IMF reviews previous commitments. For this review, the Deputy Division Chief and Resident Chief for Nepal under the Asia Pacific Division of the IMF, Tidiane Kinda, led a delegation to Nepal in late May.

During their visit, the IMF delegation met with Finance Minister Barshman Pun. In the meeting, Dr Kinda assured that the remaining amount under the ECF would be disbursed soon.

The IMF has been providing financial assistance to various countries through the ECF Fund to support structural and policy reforms, medium-term balance of payments, internal revenue mobilization, public investment management, and financial risk reduction.

Nepal has been utilizing the ECF funds as budgetary aid.