IMF fee adjustments to save Egypt $800M by 2030: Kristalina Georgieva
Updated 10/27/2024 4:43:00 AM
Arab Finance: The adjustments in the International Monetary Fund's (IMF) main and additional fees for the loan program with Egypt will save a total of $800 million for the country by 2030, Managing Director of the IMF Kristalina Georgieva told Asharq Business.
This came on the sidelines of the IMF and World Bank meetings in Washington.
The IMF Executive Board recently approved a comprehensive reduction in loan fees, slashing borrowing costs by 36%, which translates to an annual saving of $1.2 billion across IMF member countries.
Georgieva added that this measure is expected to reduce the number of countries subject to additional fees in 2026 to 13 from 20.
Additional loan fees primarily affect nations that exceed their borrowing quotas or face extended repayment periods, including Argentina, Egypt, Ukraine, and Ecuador.
IMF data, collected by the Center for Economic and Policy Research, estimates that these fees total around $6 billion over five years.
Georgieva also addressed the economic challenges Egypt faces from regional conflicts, particularly noting the loss of 70% of Suez Canal revenues—a significant setback to the Egyptian economy.
She reiterated that Egypt's situation could improve with timely economic reforms.
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