VI Measures to Deal with Overdue Financial Obligations to the IMF

Abstract

The monetary character of the IMF, and the need for its resources to revolve, requires that members with financial obligations to the institution repay them as they fall due so that these resources can be made available to other members. Since the early 1980s, overdue obligations to the IMF have been a matter of great concern because they weaken the IMF’s liquidity position and impose a cost on other members. The direct cost of overdue obligations to members is reflected in higher charges for all borrowers and in a lower rate of remuneration paid on remunerated reserve tranche positions.