The Executive Board of the International Monetary Fund (IMF) has reviewed the Fund\u2019s charges and surcharge policy, resulting in a cut on the cost of borrowing.<\/p>\n Ms Kristalina Georgieva, Managing Director of the IMF, issued a statement following the conclusion of the review, saying: \u201cIn a challenging global environment and at a time of high interest rates, our membership has reached consensus on a comprehensive package that substantially reduces the cost of borrowing while safeguarding the IMF’s financial capacity to support countries in need.”<\/p>\n She said: \u201cThe approved measures will lower IMF borrowing costs for members by 36 per cent, or about US$1.2 billion annually,\u201d explaining: \u201cThe expected number of countries subject to surcharges in fiscal year 2026 will fall from 20 to 13.\u201d<\/p>\n \u201cThis is achieved by reducing the margin over the SDR interest rate, raising the threshold for level-based surcharges, lowering the rate for time-based surcharges, and increasing the thresholds for commitment fees,\u201d Ms Georgieva noted.<\/p>\n The approved package will take effect on November 1, 2024.<\/p>\n \u201cWhile substantially lowered, charges and surcharges remain an essential part of the IMF\u2019s cooperative lending and risk management framework, where all members contribute and all can benefit from support when needed,\u201d she pointed out.<\/p>\n She said: \u201cTogether, charges and surcharges cover lending intermediation expenses, help accumulate reserves to protect against financial risks, and provide incentives for prudent borrowing.\u201d<\/p>\n \u201cThis provides a strong financial foundation that allows the IMF to extend vital balance of payments support on affordable terms to member countries when they need it most,\u201d explained the MD.<\/p>\n \u201cThis reform helps ensure that the IMF can continue serving our members in a changing world,” she mentioned.<\/p>\n Watch the latest edition of BizHeadlines below:<\/b><\/p>\n![\"IMF](\"https:\/\/cdn.ghanaweb.com\/imagelib\/pics\/289\/28996951.295.jpg\" "\\"IMF")
IMF Managing Director, Kristalina Georgieva<\/span><\/span><\/p>\n<\/div>\n