Implicit Transfers in IMF Lending, 1973

Implicit Transfers in IMF Lending, 1973–2003

By Priyadarshani Joshi, Jeromin Zettelmeyer

January 1, 2005

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Priyadarshani Joshi, and Jeromin Zettelmeyer. Implicit Transfers in IMF Lending, 1973–2003, (USA: International Monetary Fund, 2005) accessed November 21, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

We compute realized transfers implicit in IMF lending from 1973-2003, based on 2003 IMF repayment projections and promised debt relief. IMF lending rates to high-and middleincome countries fell short of industrial country borrowing rates by 30-150 basis points over the period as a whole, but exhibited a small premium after 1987. The subsidy received by low-income and HIPC countries was much higher (400-600 basis points, respectively). In 2002 NPV terms, cumulative transfers were 12-15 percent of 2002 GDP for the HIPCs, 2-3 percent for low income countries, and less than ¾ percent for the emerging market countries.

Subject: Debt relief, Loans, Market interest rates, Personal income, SDR interest rate

Keywords: Concessional lending, IMF debt relief, IMF lending, Lending cycle, WP

Publication Details

Pages:

41
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2005/008
Stock No:

WPIEA2005008
ISBN:

9781451860276
ISSN:

1018-5941

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