Financial Times FT.com

IMF in dilemma as new loans decline

By Andrew Balls in Washington

Published: December 28 2005 02:00 | Last updated: December 28 2005 02:00

A decision by Brazil and Argentina to repay their loans to the International Monetary Fund ahead of schedule raises the question of whether the institution needs a new business model.

The IMF, like any financial institution, lends at a slightly higher interest rate than the one it borrows at, using the proceeds to cover its operating expenses and add to its reserves. Yet for now, at least, its borrowing customers are drying up.

You have viewed your allowance of free articles. If you wish to view more, click the button below.

Read this