One of Ukraine's main donors, the IMF, has made a decision to reduce its charges on public debt payments.
This was reported by the IMF press service.
The International Monetary Fund decided to lower its charges (including surcharges and commitment fees) starting in November, which will reduce the borrowing costs for developing countries with active IMF financing programs.
"In the face of challenging global conditions and high interest rates, our member states have reached a consensus on a comprehensive set of measures that significantly reduce borrowing costs while maintaining the IMF’s ability to support countries in need. The approved measures will cut the cost of IMF loans to member states by 36%, or about $1.2 billion annually," commented IMF Managing Director Kristalina Georgieva.
It is expected that by the 2026 fiscal year, the number of countries subject to additional charges will decrease from 20 to 13.
"Our total annual costs for using IMF resources will decrease by about $130 million. Considering future tranches from the IMF under the current program, the impact over the next five years will be $650-700 million," said Vladyslav Rashkovan, Ukraine's Executive Director at the IMF.
