Implicit Transfers in IMF Lending, 1973–2003

Author/Editor:

Priyadarshani Joshi ; Jeronimo Zettelmeyer

Publication Date:

January 1, 2005

Electronic Access:

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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.

Series:

Working Paper No. 05/8

Subject:

English

Publication Date:

January 1, 2005

ISBN/ISSN:

9781451860276/1018-5941

Stock No:

WPIEA2005008

Format:

Paper

Pages:

41

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