IMF to reduce members' borrowing costs by $1.2 billion annually

The International Monetary Fund (IMF) announced its approval of measures that will reduce borrowing costs for its members by approximately $1.2 billion annually. According to the statement issued by the IMF, these new changes will take effect at the beginning of November.Managing Director of the IMF Kristalina Georgieva said today that these adopted measures will lower the IMF's borrowing costs for member countries by 36%, equivalent to $1.2 billion per year. She anticipated that the number of countries subject to additional fees in the fiscal year 2026 would decrease from 20 to 13.The IMF imposes regular interest rates, along with additional fees on loans that exceed certain thresholds or durations, as well as commitment fees on precautionary arrangements.These new changes come after the IMF decided this year to review its policy on fees and additional costs for the first time since 2016, following a rise in global interest rates that increased borrowing costs.