IMF loans hit a record high of $140 billion.

26 September, 2022
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IMF loans hit a record high of $140 billion.

 The International Monetary Fund's lending to economically troubled countries hit a record high, as the world's lender of last resort battles simultaneous crises that have pushed at least five countries into default, and more are expected to follow.


The epidemic and the sharp rise in global interest rates forced dozens of countries to seek assistance from the International Monetary Fund, and an analysis by the Financial Times of the lender's data shows that at the end of August, the volume of loans disbursed by the Fund amounted to 140 billion dollars in 44 separate programs.


The number is already higher than the amount of credit outstanding at the end of 2020 and 2021, when the fund hit annual records, and which is expected to grow further in the coming months as borrowing costs rise.


Experts predict that large increases in interest rates by central banks in major markets, will raise borrowing costs around the world and risk a severe recession.


Some analysts say the IMF's lending capacity could soon be stretched to its limits, as poor countries deprived of the international debt market are forced to turn to the Fund for support.


Total IMF commitments, including loans agreed but not yet disbursed, amounted to more than $268 billion.


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