IMF Will Increase Interest Rates to Bolster Resources
WASHINGTON — The International Monetary Fund will raise the interest it charges on its loans to 9.65% from 9.30%, a fund official said Friday.
The hike, which will apply to about $30 billion in outstanding loans, will become effective July 1. It aims at providing the fund with additional resources to bail out countries with overdue loan repayments.
As part of a “burden-sharing” arrangement between the industrial nations and the developing countries reached in April, the rate of interest the IMF pays to countries that lend it money will be reduced, to approximately 7.3%.
Sign up for Essential California
The most important California stories and recommendations in your inbox every morning.
You may occasionally receive promotional content from the Los Angeles Times.
