Press Release No. 24/368

IMF Managing Director Kristalina Georgieva’s Statement on the Review of Charges and the Surcharge Policy

October 11, 2024

Washington, DC: The Executive Board of the International Monetary Fund (IMF) concluded today the Review of Charges and the Surcharge Policy.^[1] Ms. Kristalina Georgieva, Managing Director of the IMF, issued the following statement.

“In a challenging global environment and at a time of high interest rates, our membership has reached consensus on a comprehensive package that substantially reduces the cost of borrowing, while safeguarding the IMF's financial capacity to support countries in need."

“The approved measures will lower IMF borrowing costs for members by 36 percent, or about US$1.2 billion annually. The expected number of countries subject to surcharges in fiscal year 2026 will fall from 20 to 13.”

“This is achieved by reducing the margin over the SDR interest rate, raising the threshold for level-based surcharges, lowering the rate for time-based surcharges, and increasing the thresholds for commitment fees. The approved package will take effect on November 1, 2024.” 

“While substantially lowered, charges and surcharges remain an essential part of the IMF’s cooperative lending and risk management framework, where all members contribute and all can benefit from support when needed. Together, charges and surcharges cover lending intermediation expenses, help accumulate reserves to protect against financial risks, and provide incentives for prudent borrowing. This provides a strong financial foundation that allows the IMF to extend vital balance of payments support on affordable terms to member countries when they need it most.”

“This reform helps ensure that the IMF can continue serving our members in a changing world."

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[1] Charges and surcharges do not apply to borrowing from the IMF’s Poverty Reduction and Growth Trust, under which low-income members receive financial support on concessional terms.