IMF slashes borrowing costs by 36%, saves countries $1.2b yearly

Oct. 13, 2024 - Guardian Nigeria

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

However, some charges will remain to ensure that the IMF has enough money to help countries in need and manage risks. “The approved measures will lower IMF borrowing costs for members by 36 percent, or about $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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