The Executive Board of the International Monetary Fund (IMF) has reviewed the Fund’s charges and surcharge policy, resulting in a cut on the cost of borrowing.

Ms Kristalina Georgieva, Managing Director of the IMF, issued a statement following the conclusion of the review, saying: “In 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."

She said: “The approved measures will lower IMF borrowing costs for members by 36 per cent, or about US$1.2 billion annually,” explaining: “The expected number of countries subject to surcharges in fiscal year 2026 will fall from 20 to 13.”

“This 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,” Ms Georgieva noted.

The approved package will take effect on November 1, 2024.

“While substantially lowered, charges and surcharges remain an essential part of the IMF’s cooperative lending and risk management framework, where all members contribute and all can benefit from support when needed,” she pointed out.

She said: “Together, charges and surcharges cover lending intermediation expenses, help accumulate reserves to protect against financial risks, and provide incentives for prudent borrowing.”

“This 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,” explained the MD.

“This reform helps ensure that the IMF can continue serving our members in a changing world," she mentioned.

Watch the latest edition of BizHeadlines below:



Ghana’s leading digital news platform, GhanaWeb, in conjunction with the Korle-Bu Teaching Hospital, is embarking on an aggressive campaign which is geared towards ensuring that parliament passes comprehensive legislation to guide organ harvesting, organ donation, and organ transplantation in the country.

Click here to follow the GhanaWeb Business WhatsApp channel