The International Monetary Fund (IMF) will reduce its fees that affect the cost of resources for countries that have financing programs from the IMF.
The cost of resources from the Fund depends on the dynamics of key rates of the world’s central banks. The IMF also adds its meetings, commissions and surcharges to the cost of resources from other central banks. It was them that he reduced.
On average, commissions are reduced by 36%. This will reduce the IMF’s annual revenues by about $1.2 billion. At the same time, the number of countries that will be subject to an additional meeting in the 2026 financial year will be reduced from 20 to 13, the NBU reported.
For Ukraine, annual costs for using IMF resources will decrease by $130 million. This will save the state $650-700 million over the next five years. Thus, costs for Ukraine are reduced by 38-39%, that is, more significantly than for other countries.
Our total annual costs for using IMF resources will decrease by about $130 million. Taking into account future IMF tranches under the current program, the effect for the next five years is $650-700 million,” estimated Vladislav Rashkovan, executive director of Ukraine at the IMF.
This will reduce Ukraine’s balance of payments deficit and reduce the dynamics of the decrease in gold and foreign exchange reserves because of this. Given the risk of such a move for the IMF, this is a significant achievement.
Let us recall that Ukraine suffers from a severe balance of payments deficit due to a deficit in trade in goods and services. Arms exports can be one of those forces that will not only reduce the cost of factory production and attract foreign investment, but also reduce this gap due to increased exports of value-added products.
Source: Racurs
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