On October 11, 2024, the International Monetary Fund (IMF) announced a significant reduction in borrowing costs for its member countries, cutting these costs by approximately $1.2 billion annually. This decision was revealed by IMF Managing Director Kristalina Georgieva during a statement.
The measures will lower borrowing costs by 36%, affecting the number of countries subject to surcharges, which is expected to decrease from 20 to 13 by fiscal year 2026. The IMF's review of its policy on charges and surcharges, the first since 2016, was prompted by rising global interest rates that have increased borrowing costs for many nations.
Countries like Ukraine, Egypt, Argentina, Ecuador, and Pakistan, which have been among the highest payers of these surcharges, will benefit from this change. While the decision has been welcomed by some, it has also faced criticism from academics and non-profit organizations advocating for a complete cancellation of surcharges, arguing that these fees disproportionately burden nations already facing economic hardships.