IMF Will Increase Interest Rates to Bolster Resources

From United Press International

The International Monetary Fund will raise the interest it charges on its loans to 9.65% from 9.30%, a fund official said Friday.

The hike, which will apply to about $30 billion in outstanding loans, will become effective July 1. It aims at providing the fund with additional resources to bail out countries with overdue loan repayments.

As part of a “burden-sharing” arrangement between the industrial nations and the developing countries reached in April, the rate of interest the IMF pays to countries that lend it money will be reduced, to approximately 7.3%.