IMF cuts fees: Ukraine to save hundreds of millions of dollars
Pravda Ukraine
One of Ukraine’s main donors, the IMF, has made a decision that will reduce payments on the national debt.
Source: IMF’s press office
Details: The IMF has decided to reduce its fees (charges, surcharges, and commitment fees) starting in November, which affect the cost of resources for developing countries that have funding programmes from the Fund.
Quote: “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 per cent, or about US$1.2 billion annually,” commented IMF Managing Director Kristalina Georgieva on the decision.
It is expected that in the 2026 financial year, the number of countries from which additional charges will be levied will drop from 20 to 13.
“Our total annual expenses for using IMF resources will decrease by about US$130 million. Considering the upcoming tranches from the IMF under the current programme, the effect over the next five years will be US$650-700 million,” said Ukraine’s Executive Director at the IMF Vladyslav Rashkovan.
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