Washington: Argentina, Ukraine and Egypt high the record of nations borrowing essentially the most from the Worldwide Financial Fund (IMF) essentially the most in 2025, collectively accounting for practically half of the whole $162 billion owed. This got here to mild throughout an IMF and the World Financial institution assembly in Washington, DC that’s being attended monetary delegates and central bankers from world wide.
The discussions, which is able to conclude on Saturday, give attention to the influence of those money owed on international financial stability, debt administration and techniques to assist nations dealing with extreme monetary crises. The IMF warns of economic misery following US commerce tariffs and rising protectionism.
Generally known as a “lender of final resort”, the IMF steps in when nations face extreme monetary crises. It supplies help when ordinary borrowing channels are unavailable. Its loans include strict circumstances, and austerity measures typically observe. These measures can enhance social and financial hardships, making the loans a double-edged sword.
What Is The IMF And How Does It Fund Itself?
The IMF was based in 1944 on the Bretton Woods Convention in America’s New Hampshire. It was created to stabilise the post-war international economic system. Primarily based in Washington, DC, it has grown from 44 founding members to 191 as we speak. The IMF works with the United Nations and different organisations to assist international monetary stability.
It supplies coverage recommendation, short-term monetary help and capability growth. Any nation can be a part of if authorised by present members. Nations pay a quota based mostly on the dimensions of their economic system. Wealthier nations contribute extra. The quota determines contributions, borrowing limits and voting energy.
The IMF has a complete lending capability of about $1 trillion. It attracts funds from member nations. Rich and steady economies act as collectors. They earn curiosity on contributions. In 2024, about 50 creditor nations acquired roughly $5 billion in curiosity.
Which Nations Owe The Most To The IMF?
Debt is expressed in Particular Drawing Rights (SDRs), that are based mostly on 5 currencies – US greenback, euro, pound sterling, Chinese language renminbi and Japanese yen. The SDRs should not a forex. Nations can trade them for these currencies. As of October 15, one SDR equals $1.36.
The IMF has the highest-ever complete credit score excellent. Eighty-six nations owe SDR 118.9 billion, roughly $162 billion. Three nations owe nearly half of the whole. The highest ten owe 73 p.c.
Argentina owes essentially the most (SDR 41.8 billion, which is about $57 billion). Ukraine owes SDR 10.4 billion, about $14 billion. Egypt owes SDR 6.9 billion, about $9 billion.
Why Does Argentina Owe So A lot?
Argentina is the IMF’s largest borrower. Its debt exceeds the mixed complete of Ukraine, Egypt, Pakistan, Ecuador, Ivory Coast, Kenya and Bangladesh.
In April, the IMF authorised its twenty third programme to Argentina. The programme is a $20 billion bailout. It’s designed to prop up the economic system. Argentina has repeatedly borrowed from the IMF. It has acquired essentially the most bailouts within the IMF historical past.
In 2018, the nation secured a $57 billion mortgage. It was the biggest within the IMF historical past. The mortgage addressed fiscal imbalances. It adopted a forex disaster and double-digit inflation.
In October 2025, the Donald Trump administration introduced a $20 billion monetary assist bundle for Argentina. The bundle stabilises the economic system earlier than the October 26 midterm elections. It features a $20 billion forex swap with Argentina’s central financial institution. US {dollars} are exchanged for pesos. This bolsters overseas forex reserves.
Why Does Ukraine Owe The IMF Extra Than $14 Billion?
Ukraine’s economic system collapsed after Russia invaded in February 2022. Exterior debt is greater than double pre-war ranges. Whole government-guaranteed debt reached $152 billion by April. Greater than 70 p.c ($108.4 billion) is exterior obligations.
In March 2023, the IMF authorised a four-year Prolonged Fund Facility (EFF) price $15.5 billion. The plan is a part of a global assist bundle. The bundle stabilises Ukraine’s economic system. It helps civilian spending and debt servicing. Ukraine has excessive navy expenditure.
As of October 2025, Kyiv acquired $10.6 billion of the deliberate $15.5 billion below the EFF for 2023-2027.
Why Does Egypt Owe The Third-Most?
Egypt borrows repeatedly to stabilise its economic system. Debt and financial deficits are excessive. International forex reserves are low. Inflation is excessive.
In 2016, the IMF authorised the EFF programmes price $11.9 billion. It addressed longstanding financial points after the 2011 rebellion. The IMF aimed to repair overvalued forex, sluggish progress, unemployment and inflation. Measures included versatile trade charge, tax will increase and subsidy and wage cuts.
In March 2025, the IMF authorised $1.2 billion for Egypt. This adopted the fourth overview of the $8 billion reform programme. Cairo reported inflation nearly halved in February. Reforms helped stabilise the economic system.
Which Nations Owe The Most Relative To GDP?
IMF loans are billions of {dollars}. They normally stay a small a part of complete debt and GDP. The nations with the best IMF debt as a share of GDP are Suriname (13 p.c), Central African Republic (9.4 p.c), Argentina (8.3 p.c), Barbados (7.4 p.c) and The Gambia (6.95 p.c).