WASHINGTON: The executive board of the International Monetary Fund (IMF) on Monday did not agree on launching a formal review over the matter of suspending the surcharges it collects from mostly middle-and lower-income countries on larger loans that are not repaid quickly, reported Reuters.
Argentina, Pakistan and others are pushing the global lender to drop, or at least temporarily waive, the surcharges, which according to International Monetary Fund will cost affected borrowers $4 billion alongside interest payments and fees from the start of the COVID-19 pandemic in 2020 till the end of 2022.
Developed countries opposing change in IMF policy
The United States, Germany, Switzerland and other developed economies have opposed a change, arguing that International Monetary Fund should not change its financing model at a time when the global economy’s growth has been significantly hampered.
An IMF spokesperson said the board, during its regular review of the global lender’s precautionary balances, discussed potential changes to the strategy, but failed to reach a consensus on reviewing the policy.
IMF said it would provide a detailed account of the board’s discussions via a staff paper and a press release. No date has been set for any further board meetings.
