Reforms to the International Monetary Fund's (IMF) lending mechanism announced on October 11 free eight indebted countries from the requirement to pay a surcharge when borrowing from the IMF.
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| IMF adjusts policies, "big debtors" save billions of dollars. (Illustration photo) |
IMF Managing Director Kristalina Georgieva said the new reforms would help member countries reduce borrowing costs by up to 36%, equivalent to saving about $1.2 billion per year.
The IMF has agreed to adjust the surcharge that highly indebted countries, such as Ukraine and Argentina, must pay starting November 1, 2024, the executive board said.
The IMF will raise the debt threshold at which members start paying surcharges. The adjustment will exempt eight countries from paying extra borrowing costs from the IMF, including Benin, Ivory Coast, Gabon, Georgia, Moldova, Senegal, Sri Lanka and Suriname.
The IMF estimates that only 11 countries will be required to meet the surcharge requirement when the new policy comes into effect.
According to Reuters , the Argentine government welcomed the IMF's decision and said the reforms would help the country save $3.2 billion.
This is the first time since 2016 that the IMF has decided to review its fee and surcharge policy due to rising global interest rates, which have increased borrowing costs for countries.
Source: https://baoquocte.vn/imf-dieu-chinh-co-che-cho-vay-nhieu-quoc-gia-tho-phao-khi-tiet-kiem-duoc-hang-ty-usd-289859.html
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