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The International Monetary Fund (IMF) is set to discuss a review of the fees it charges its biggest borrowers, known as surcharges. This review comes after some nations raised concerns that the costs are becoming onerous due to higher interest rates. The IMF board, comprising a management official and 24 members, will conduct the review. Currently, the IMF charges a basic rate of approximately 5% on loans, with an additional fee of 2 percentage points on outstanding loans above a certain limit. This fee increases to 3 percentage points for delayed repayment. Critics argue that these surcharges no longer serve their initial purpose of encouraging rapid repayment and have instead become a burden on borrowing nations.
The IMF will discuss a review of its fees Interest & fees on IMF loans: • Basic rate: ~5% • Fee of 2 percentage points on outstanding loans above a limit • Fee rises to 3 percentage points for delayed repayment https://t.co/9h3rGc3auC https://t.co/G77Jw1zMtW
IMF surcharges no longer serve their initial purpose. Rather than encouraging rapid repayment, they have become a burden that makes it harder for countries ever to exit from IMF borrowing. Very welcome and overdue review https://t.co/DLm85Ga3BV
The International Monetary Fund is set to discuss a review of the fees it charges its biggest borrowers after some nations raised concerns that costs are becoming unreasonable due to higher interest rates. The IMF board, made up of a management official and 24 members… https://t.co/DDbyxaPt5g
