Arab Finance: The International Monetary Fund will reduce surcharges – which are imposed on countries that borrow more than their allocated quotas or are late in repaying loans – by an average of 36% from November 1, the Fund’s Managing Director, Kristalina Georgieva, said in statement The fund issued a review on Friday about its policy on fees.
The move comes amid growing concerns that the increasing financial burden on borrowing countries – especially with the global high interest rate environment – could backfire on the original financial support goals and burden already distressed countries.
The decision will reduce the interest paid by Egypt to the fund by between 300 and 400 million dollars, supported by an increase in Egypt’s share in the fund, enabling it to obtain 8 billion dollars in the program agreed upon last March, according to what an Egyptian government told Enterprise, revealing that the government will enter In talks with the Fund in the coming days to discuss the discount rates according to the actual payment schedules that the country is committed to to the Fund.
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