IMF reviews reducing loan fees for Egypt, major borrowers
Updated 7/9/2024 6:01:00 AM
Arab Finance: The International Monetary Fund (IMF) is reviewing the fees it imposes on its largest borrowers including Egypt, responding to concerns from some countries that the costs have become excessive amid rising interest rates, Asharq Business reported, citing unnamed sources familiar with the matter.
The IMF board, which includes 24 members representing 190 countries and management officials, will consider options for granting countries relief from additional fees.
Fees are typically applied to countries that borrow more than their allocated share or are late in repaying loans under the IMF's programs.
In April, the IMF announced that its executive board would begin considering imposing additional fees this summer.
The review may present options for potential changes and will take into account the implications for borrowers and the IMF’s risk management.
The IMF has imposed these fees for years to reduce over-reliance by large borrowers during crises. While these fees have bolstered the IMF's finances, they have added billions of dollars in costs to countries already struggling economically.
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