IMF Reduces Borrowing Costs for Member Countries by 36% in Key Policy Reform
The International Monetary Fund (IMF) has significantly lowered borrowing costs for its member countries by 36%, following the conclusion of the Review of Charges and the Surcharge Policy. The reform, set to take effect on November 1, 2024, aims to ease financial pressures amid rising global interest rates.
IMF Managing Director Kristalina Georgieva announced that the measures will save members approximately $1.2 billion annually by reducing surcharges and raising thresholds for commitment fees and level-based surcharges. This move is expected to reduce the number of countries subject to surcharges from 20 to 13 by fiscal year 2026.
Despite the reductions, Georgieva emphasized that charges and surcharges remain critical to the IMF’s risk management framework, allowing the institution to continue providing vital balance of payments support while maintaining its financial strength.
“This reform helps ensure that the IMF can continue serving our members in a changing world,” Georgieva stated.
The policy changes come in response to global economic challenges, including high interest rates, ensuring that the IMF can support countries in need while safeguarding its financial capacity.
