NEW YORK: The International Monetary Fund on Friday approved measures that will reduce its members’ borrowing costs by about $1.2 billion annually, the fund’s Managing Director Kristalina Georgieva said.
“The approved measures will lower IMF borrowing costs for members by 36 percent, or about $1.2 billion annually,” Georgieva said in a statement. “The expected number of countries subject to surcharges in fiscal year 2026 will fall from 20 to 13.”
This year, the IMF decided to review its policy on charges and surcharges for the first time since 2016, as higher interest rates globally have pushed borrowing costs higher.
The fund charges regular interest, plus surcharges for loans above a certain threshold or duration, and commitment fees for precautionary arrangements.
The IMF said the charge above the fund’s interest rate will be lowered, while the amount and duration thresholds will rise, as will the threshold for commitment fees.
“While substantially lowered, charges and surcharges remain an essential part of the IMF’s cooperative lending and risk management framework, where all members contribute and all can benefit from support when needed,” Georgieva said.
The changes will take effect on Nov. 1.
The five countries paying the highest surcharges are Ukraine, Egypt, Argentina, Ecuador and Pakistan according to research from Boston University’s Global Development Policy Center.
Argentina, currently the IMF’s largest debtor, will save over $3 billion with the changes, according to Finance Secretary Pablo Quirno.
Friday’s announcement falls short of calls by academics, non-profit groups and other economists, who have argued for a full cancelation of IMF surcharges, which they say place extra burdens on borrowing countries at a time when they are in dire economic circumstances and counteract the impact of IMF lending.
IMF to lower member borrowing costs by $1.2 billion annually
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IMF to lower member borrowing costs by $1.2 billion annually
- This year, the IMF decided to review policy on charges, surcharges for the first time since 2016
- The decision came after higher interest rates internationally pushed the borrowing costs higher
Afghanistan says it thwarted Pakistani airstrike on Bagram Air Base as fighting enters fourth day
- The fighting has been the most severe between the neighbors for years
- Pakistan accuses Taliban government of harboring militant groups that stage attacks against it
KABUL: Afghanistan thwarted attempted airstrikes on Bagram Air Base, the former US military base north of Kabul, authorities said Sunday, while cross-border fighting between Pakistan and Afghanistan stretched into a fourth day.
The fighting has been the most severe between the neighbors for years, with Pakistan declaring that it’s in “open war” with Afghanistan.
The conflict has alarmed the international community, particularly as the area is one where other militant organizations, including Al-Qaeda and the Daesh group, still have a presence and have been trying to resurface.
Pakistan accuses Afghanistan’s Taliban government of harboring militant groups that stage attacks against it and also of allying with its archrival India.
Border clashes in October killed dozens of soldiers, civilians and suspected militants until a Qatari-mediated ceasefire ended the intense fighting. But several rounds of peace talks in Turkiye in November failed to produce a lasting agreement, and the two sides have occasionally traded fire since then.
On Sunday, the police headquarters of Parwan province, where Bagram is located, said in a statement that several Pakistani military jets had entered Afghan airspace “and attempted to bomb Bagram Air Base” at around 5 a.m.
The statement said Afghan forces responded with “anti-aircraft and missile defense systems” and had managed to thwart the attack.
There was no immediate response from Pakistan’s military or government regarding Kabul’s claim of attempted airstrikes on Bagram or the ongoing fighting.
Bagram was the United States’ largest military base in Afghanistan. It was taken over by the Taliban as they swept across the country and took control in the wake of the chaotic US withdrawal from the country in 2021. Last year, US President Donald Trump suggested he wanted to reestablish a US presence at the base.
The current fighting began when Afghanistan launched a broad cross-border attack on Thursday night, saying it was in retaliation for Pakistani airstrikes the previous Sunday.
Pakistan had said its airstrike had targeted the outlawed Pakistani Taliban, also known as Tehreek-e-Taliban Pakistan, or TTP. Afghanistan had said only civilians were killed.
The TTP militant group, which is separate but closely allied with Afghanistan’s ruling Taliban, operates inside Pakistan, where it has been blamed for hundreds of deaths in bombings and other attacks over the years.
Pakistan accuses Afghanistan’s Taliban government of providing a safe haven within Afghanistan for the TTP, an accusation that Afghanistan denies.
After Thursday’s Afghan attack, Pakistani Defense Minister Khawaja Mohammad Asif declared that “our patience has now run out. Now it is open war between us.”
In the ongoing fighting, each side claims to have killed hundreds of the other side’s forces — and both governments put their own casualties at drastically lower numbers.
Two Pakistani security officials said that Pakistani ground forces were still in control on Sunday of a key Afghan post and a 32-square-kilometer area in the southern Zhob sector near Kandahar province, after having seized it during fighting Friday. The captured post and surrounding area remain under Pakistani control, they added. The officials spoke on condition of anonymity, because they weren’t authorized to speak publicly.
In Kabul, the Afghan government rejected Pakistan’s claims. Deputy government spokesman Hamdullah Fitrat called the reports “baseless.”
Afghan officials said that fighting had continued overnight and into Sunday in the border areas.
The police command spokesman for Nangarhar province, Said Tayyeb Hammad, said that anti-aircraft missiles were used from the provincial capital, Jalalabad, and surrounding areas on Pakistani fighter jets flying overhead Sunday morning.
Defense Ministry spokesman Enayatulah Khowarazmi said that Afghan forces had launched counterattacks with snipers across the border from Nangarhar, Paktia, Khost and Kandahar provinces overnight. He said that two Pakistani drones had been shot down and dozens of Pakistani soldiers had been killed.
Fitrat said that Pakistani drone attacks hit civilian homes in Nangarhar province late Saturday, killing a woman and a child, while mortar fire killed another civilian when it hit a home in Paktia province.
There was no immediate response to the claims from Pakistani officials.
