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

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 programs from February 15 to 28 this year.

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

On January 12, 2022, the IMF approved a zero-interest rate concessional loan of about 395.9 million US dollars to Nepal through the ECF.

The IMF had already released 110 million US dollars last January. The current 52.8 million US dollars is the second installment.

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