The IMF, one of Ukraine’s key donors, has made an important decision that will reduce public debt payments for developing countries, including Ukraine. From November, the IMF will reduce its commissions, affecting costs for countries with IMF financing programs.
“In difficult global conditions and a period of high interest rates, our member states have reached a consensus on a comprehensive set of measures that significantly reduce the cost of borrowing,” IMF chief Kristalina Georgieva commented on the decision.
With the changes the total cost of borrowing will decrease by 36%, or by $1.2B per year. By fiscal year 2026, the number of countries for which additional fees will be charged will decrease from 20 to 13. Ukraine will receive a significant positive impact.
“Our total annual expenses for using IMF resources will decrease by about $130M. Considering future IMF tranches under the current program, Ukraine will pay $650-700M less over the next few years,” noted IMF Director for Ukraine Vladyslav Rashkovan.