IMF to provide 52.8 million US dollar loan to Nepal

The International Monetary Fund (IMF) is to provide 52.8 million US dollar loan to Nepal after conducting the first and second reviews of the Extended Credit Facility (ECF)-supported programmes.

According to the press statement released by the IMF on Monday, the executive board of the IMF allowed the authorities disbursement of the amount after reviewing the ECF-supported programmes from February 15 to 28 this year.

Nepal had initiated the process to obtain loan from the IMF under the ECF after the balance of payment began worsening and the foreign currency reserve went on decreasing.

In January 12, 2022, the IMF had approved zero interest rate concessional loan of about 395.9 million US dollar to Nepal through the ECF. The IMF had already released 110 million US dollar in last January. The current 52.8 million US dollar is the second installment.

The assistance is to support Nepal’s reform programmes to help mitigate the negative impact of COVID-19 on public health and economic activities while protecting the vulnerable groups, preserving the macroeconomic and financial stability and poverty reduction, read the statement.