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WASHINGTON - The International Monetary Fund's income shortfall should widen by US$67 million ($99 million) to US$105 million in fiscal year 2007 after Indonesia, Serbia and Uruguay joined the list of borrowers repaying their IMF debts early, the global lender said today.
The Fund last year estimated the shortfall in fiscal year 2007, which ends on April 30, would be about US$90 million.
Fewer global financial crises and increased private capital to emerging market countries has lowered the need for IMF assistance over the past several years, prompting a fall in its income.
Some critics have urged the IMF to modernise and tailor itself more to the needs of emerging economies in Asia and elsewhere, which were once its biggest borrowers.
Last year the IMF embarked on a reform programme, including increasing the voting power of emerging economies that will give them more say in the institution.
In a statement, the IMF said the advance payments by the three countries "worsened the income picture in the short run, but have not fundamentally changed the medium-term outlook."
The IMF said the early repayments lowered interest payments to the IMF and increased the burden on a few remaining borrower nations.
For example, the move would increase the repayments by the IMF's largest borrower Turkey to a special account to US$26 million in fiscal year 2007, compared with an earlier estimate of US$17 million.
As of November, other large borrowers included Pakistan, Ukraine, Bulgaria, Democratic Republic of Congo, Dominican Republic and Iraq.
The IMF said it would suspend some payments by the remaining debtor nations and some donor countries in the second half of the fiscal year because the amounts they owe would increase sharply as overall credit levels declined.
"The decline in Fund credit outstanding has increased the burden on debt countries under the burden-sharing mechanisms, since contributions are based on relative credit levels," the IMF said.
"Burden-sharing contributions are collected from both IMF debtor and creditor nations by increasing the rate of charge on Fund credit outstanding and reducing the rate of remuneration to creditor countries," the IMF added.
- REUTERS
