10 Countries with the Most Debt to the IMF, Ukraine Enters the Top 3

JAKARTA – International Monetary Fund ( IMF ) provides support to countries seeking loans to overcome economic crises, stabilize currencies, implement structural reforms, and ease balance of payments difficulties.

The IMF emerged because many countries experienced economic devastation due to the Great Depression and World War II. The IMF has experienced varying successes and failures in fulfilling its primary mission of supervising the monetary system, ensuring exchange rate stability and eliminating restrictions that impede or slow down trade.

For many countries, the IMF has become an organization to rely on during times of economic hardship. When a country requests a loan, the IMF will provide the country with the money it needs to rebuild or stabilize its currency, rebuild economic growth, and continue purchasing imports.

The IMF offers various types of loans to member countries that are tailored to meet specific needs. The IMF is different from the World Bank. The main difference lies in the purpose and function of each. The IMF oversees the stability of the world’s monetary system, while the World Bank’s goal is to reduce poverty by offering aid to middle- and low-income countries.

Based on this year’s IMF report, nearly 100 member countries have applied for loans with total debt reaching USD 111 billion. Released by the IMF last month, of all the countries in debt there were 10 countries which contributed around 69% of the total debt.

The following 10 countries with the most debt to the IMF are quoted SINDOnews from Visual CapitalistSunday (9/6/2024)

1. Argentina

In first position is Argentina which has the largest debt of USD 30.5 million to the IMF. Most of the money was used to stabilize inflation and currency crises.

2 Egypt

This country has a debt of USD 10.8 million. The loan is used to support economic and social reform programs and strengthen the financial sector.

3. Ukraine

Ukraine is in the top three with a debt of USD9 million. These funds are to overcome the economic impact of the prolonged conflict and strengthen foreign exchange reserves.

4. Pakistan