IMF Cuts Borrowing Costs by 36%, Eases Surcharges for Eight Indebted Nations

The International Monetary Fund (IMF) has approved reforms aimed at reducing borrowing costs for its member countries by 36%, which will take effect on November 1. These changes include raising the debt threshold at which additional surcharges apply, thereby exempting eight heavily indebted countries—Benin, Ivory Coast, Gabon, Georgia, Moldova, Senegal, Sri Lanka, and Suriname—from paying extra borrowing fees.

This move is expected to lower borrowing expenses by approximately $1.2 billion annually for IMF member nations. IMF Managing Director Kristalina Georgieva emphasized that this reduction comes at a time when high global interest rates are placing financial strain on countries, allowing the IMF to offer support without compromising its resources.