NEW YORK, 12th October, 2024 - The International Monetary Fund (IMF) has announced a significant reduction in borrowing costs for its member countries, amounting to approximately US$1.2 billion annually. This decision, revealed by IMF Managing Director Kristalina Georgieva, comes as part of a review of the surcharge policy in response to rising global interest rates.
The approved measures will lower IMF borrowing costs by 36 percent, with the number of countries subject to surcharges decreasing from 20 to 13 by the fiscal year 2026. These changes are set to take effect on 1st November.
Currently, five countries—Ukraine, Egypt, Argentina, Ecuador, and Pakistan—are facing the highest surcharges imposed by the IMF. Argentina, which is the IMF's largest debtor, is projected to save over $3 billion due to these reforms. However, the announcement has drawn criticism from various economists and organizations advocating for the complete removal of surcharges, arguing that they place additional burdens on struggling economies.