A Penalty on Top of Debt
Beyond standard interest, the International Monetary Fund (IMF) imposes surcharges on countries with large or long-term loans. These fees act as penalties, extracting billions and diverting scarce resources from essential services. Between 2012 and late 2024, select MENA countries paid over 1.38 Billion SDR in these charges.
Surcharge Payments by Country (2012-2024)
Data Source: IMF Finance Flows Data, Authors' calculation. Total shows over 1.88 Billion USD.
The Human Cost in Egypt
Retrospective Cost (2015-2024)
The ~$1.64 Billion in surcharges Egypt paid was equivalent to:
55%
of Food Subsidies
60%
of Energy Subsidies
Savings vs. Needs (Post-Reform)
The Burden Remains
Despite the reforms, Egypt is still projected to pay approximately 4.5 billion LE (equivalent to ~64.9 million SDR or $88.264 million USD) in surcharges in the period from December 2024 to January 2026. This payment could cover the entire projected combined subsidies for electricity (2.5B EGP) and for farmers (0.6 billion LE) for 2025.
In Morocco a Pure Form of Illegitimate Debt
The IMF acknowledges Morocco could withstand a moderate external shock. However, the system creates a trap: facing a crisis through no fault of its own would force Morocco to access an IMF credit line, which—under current rules—would automatically trigger years of surcharge payments.
External Shock
(e.g. Global Recession)
Access IMF Credit Line
(For stabilization)
Surcharges Triggered
(Penalty for borrowing)
Illegitimate Debt Created
(Punished for a crisis)
This penalizes a country for its vulnerability, creating debt with no economic justification.
A Call for Systemic Reform
The data reveals that IMF surcharges are not merely fees, but significant fiscal burdens that crowd out essential public spending and create unjust debt. A comprehensive reform of this policy is essential from a debt justice perspective to protect the well-being of citizens in the Global South.