Making the IMF fit for purpose


In 2024, debtor countries will pay the International Monetary Fund (IMF) an effective
annual interest rate of up to 8 basis points. The current lending rate policy is procyclical,
it amplifies the global spill-over of monetary policy and makes it harder for IMF programs
to promote economic recoveries. This T20 paper recommends setting a cap on the lending rate and/or
devising a surcharge-sliding scale.

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TF03_ST_01_Making_the_IMF_fit_for_Purpose