. KATHMANDU: The International Monetary Fund (IMF) is to provide the sixth and final tranche of the Extended Credit Facility (ECF) to Nepal. After completing a three-month review process, the IMF’s executive board decided to provide about $45 million ($40 million).

Informing about the Board’s decision, Finance Minister Rameshwor Khanal said, “This installment is expected to strengthen the economic stability of the country and support various development projects.”TAG_OPEN_p_11 ”

Earlier, Nepal had received the fifth tranche of cash on March 15.TAG_OPEN_p_10 The IMF team then came to Nepal and assessed the progress of the commitments made in the implementation of the ECF agreement and the release of the fifth tranche. In its preliminary report, the team had stated that Nepal was making continuous progress in the implementation of the programme.

The IMF considered the reform to be a key component of the publication of the revised National Project Bank Guidance, and the preparation of a roadmap after completing the loan portfolio review of commercial banks.TAG_OPEN_p_9 The condition was that the sixth installment would be released only after these reforms were completed.

} The process has moved forward after the Nepal Rastra Bank (NRB) started the loan portfolio review by selecting the banks. After assuming office, Finance Minister Khanal also held discussions with the IMF and took the initiative to complete the review. Finally, after the review was approved, the board decided to give the final tranche to Nepal.

This decision is seen as a positive sign towards long-term economic stability and structural reforms in Nepal.TAG_OPEN_p_7 The government plans to use the available funds for infrastructure development and national priority projects.