IMF Policy to Facilitate Interest Rate Payments
Associated Press
WASHINGTON —
The International Monetary Fund says it will lend debtor governments more money if they are hit unexpectedly by higher interest on their old debts.
The IMF said that under its new system, called the Compensatory and Contingency Financing Facility, an indebted country can borrow up to 35% of its contribution to the fund.
Much of the estimated $1.2-trillion debt of Third World countries was borrowed at interest rates that vary every day.
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