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Implicit Transfers in IMF Lending, 1973–2003

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  • Ms. Priyadarshani Joshi
  • Mr. Jeromin Zettelmeyer

Abstract

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.

Suggested Citation

  • Ms. Priyadarshani Joshi & Mr. Jeromin Zettelmeyer, 2005. "Implicit Transfers in IMF Lending, 1973–2003," IMF Working Papers 2005/008, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2005/008
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    References listed on IDEAS

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    1. Ms. Christina Daseking & Mr. Robert Powell, 1999. "From Toronto Terms to the HIPC Initiative: A Brief History of Debt Relief for Low-Income Countries," IMF Working Papers 1999/142, International Monetary Fund.
    2. Mrs. Lynn Aylward & Mr. Rupert Thorne, 1998. "An Econometric Analysis of Countries' Repayment Performance to the International Monetary Fund," IMF Working Papers 1998/032, International Monetary Fund.
    3. Michael Mussa, 1999. "Reforming the International Financial Architecture: Limiting Moral Hazard and Containing Real Hazard," RBA Annual Conference Volume (Discontinued), in: David Gruen & Luke Gower (ed.),Capital Flows and the International Financial System, Reserve Bank of Australia.
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    Cited by:

    1. Boz, Emine, 2011. "Sovereign default, private sector creditors, and the IFIs," Journal of International Economics, Elsevier, vol. 83(1), pages 70-82, January.
    2. Hassan Naqvi, 2014. "IMF Conditionality and the Intertemporal Allocation of Resources," International Review of Finance, International Review of Finance Ltd., vol. 14(2), pages 203-235, June.

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