On October 12, the China News Service reported that on the 11th, the International Monetary Fund (IMF) approved measures that will significantly reduce borrowing costs for its member countries. These changes are expected to lower borrowing costs by 36%, translating to an annual savings of approximately $1.2 billion for member nations.
In a statement released on the IMF’s website, IMF President Kristalina Georgieva announced that the number of countries required to pay surcharges is projected to decrease from 20 to 13 by fiscal year 2026.
Georgieva emphasized that in this era of high-interest rates and a challenging global environment, member countries have come to an agreement on a comprehensive package plan. She highlighted that this plan will substantially cut borrowing costs, ensure the IMF’s financial support for nations in need, and allow the institution to continue serving its members effectively in a constantly evolving world.
According to the statement, this package plan will take effect on November 1 of this year.
On the 11th, the IMF’s Executive Board completed a review of its fee and surcharge policies. As reported by Reuters, this review comes in response to rising global interest rates that have increased borrowing costs, marking the first policy review since 2016.
