Faculty of Social and Behavioural Sciences (FMG) - Amsterdam Institute for Social Science Research (AISSR)
Abstract
In 2024, debtor countries will pay the International Monetary Fund (IMF) an effective annual interest of up to 800 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. We recommend setting a cap on the lending rate and/or devising a surcharge-sliding scale.
Document type
Report
Note
T20 Policy Brief. Task Force 03: Reforming the International Financial Architecture.
