The decision of the International Monetary Fund (IMF) to reduce loan fees will allow Ukraine to save up to $700 million over the next five years. This was announced by Vladislav Rashkovan, IMF Deputy Executive Director for Ukraine, on his Facebook page.
‘Our total annual costs for using IMF resources will be reduced by about $130 million. Taking into account future tranches of the IMF under the current programme, the effect for the next 5 years will be $650-700 million,’ Rashkovan said.
He added that Ukraine’s costs will be reduced by 38-39%, which is slightly higher than the average fee reduction for other countries, which is 36%.
Earlier it was reported that the IMF Executive Board had revised the level of loan fees, which will significantly reduce the financial burden on borrowing countries. According to forecasts, the number of countries obliged to pay additional fees will be reduced from 20 to 13 by 2026.
This decision by the IMF includes a reduction in fees that affect the cost of credit for developing countries with active financing programmes. The IMF’s income from these fees is expected to decrease by about $1.2 billion annually.
