IMF slashes borrowing costs by 36%, lowers countries’ exposure by $1.2b yearly

Oct. 14, 2024 - Guardian Nigeria

International Monetary Fund (IMF) has announced it is reducing the costs for countries that borrow money from it by up to 36 per cent. The fund noted that the changes include reducing extra charges on loans and raising the threshold for when these charges apply.

It, however, said some charges would remain to ensure the IMF had enough money to help countries in need and manage risks. “The approved measures will lower IMF borrowing costs for members by 36 per cent, or about US$1.

2 billion annually. Together, charges and surcharges cover lending intermediation expenses, help accumulate reserves to protect against financial risks and provide incentives for prudent borrowing.

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