In times of financial distress, the International Monetary Fund (IMF) is essential in keeping economies stable by providing vital assistance to countries dealing with structural issues and imbalances in the economy.
As of April 2024, the Fund’s global debt portfolio reached $149 billion, reflecting the urgency and scale of recent financial interventions.
Remarkably, roughly 70% of this debt is owed by just 10 countries, highlighting the severity of their financial difficulties and dependence on IMF assistance.
Top 10 Most Indebted Countries to the IMF
Argentina
Population: 45 million
Main Industries: Agriculture, automotive, manufacturing, energy.
Key Exports: soybeans, vehicles, petroleum gas, corn.
GDP: $641 billion
Per Capita GDP:$12,625
Argentina’s $32 billion IMF debt represents 4.9 % of its GDP. The country has faced economic crises, hyperinflation, and currency devaluation, leading to multiple IMF programs.
To help the country’s collapsing economy at the beginning of the new millennium, the IMF gave $88.3 billion. President Néstor Kirchner then paid off the whole debt in 2006, despite political unrest and unhappiness.
Mauricio Macri, who took office in 2015, turned to the IMF in 2018 for a $50 billion bailout, the largest in the organization’s history.
But the nation quickly found itself in financial trouble once more, and in 2022 it went back to the IMF for a further $44 billion loan.
In the most recent staff review, which was released on February 1, the IMF executive board authorized an immediate $4.7 billion loan for Argentina.
Despite being a leading agricultural exporter, the economy struggles with high public debt and unemployment. Political instability further complicates recovery efforts, making sustainable growth unattainable.
Egypt
Population: 111 million
Main Industries:Tourism, textiles, petroleum, construction.
Key Exports: Crude oil, textiles, chemicals.
GDP:$396 billion
Per Capita: GDP $4,177
With an $11 billion debt to the IMF, 2.7% of its GDP, Egypt faces economic challenges, including high inflation and a significant informal sector.
Tourism, a critical revenue source, fluctuates due to political and security concerns. Reforms under IMF agreements aim to stabilize the economy, but structural issues like high unemployment persist.
On March 29, Egypt and the IMF reached a staff-level agreement regarding the economic policies required for additional support, resulting in the nation’s immediate availability of $820 million.
If Egypt lets market forces determine the value of its currency and makes foreign currency available to individuals and businesses, then an additional support of up to $8 billion is available.
Ukraine
Population:38 million
Main Industries: Steel, machinery, agriculture, IT services.
Key Exports: Grain, iron, sunflower oil.
GDP: $179 billion
Per Capita GDP: $2,207
Ukraine’s $9 billion IMF debt (5% of GDP) reflects its struggle amid ongoing conflict with Russia.
Although infrastructure and industry have been destroyed by the war, agriculture is still strong and Ukraine is a significant supplier of grains to the world market.
In March 2024, the IMF approved a $15.6 billion loan, of which $880 million was given to Ukraine in response to Russia’s full-scale invasion.
Part of a $122 billion aid package for Ukraine, this was the Fund’s first significant conventional financing to a nation engaged in a major war.
The nation depends on reforms and foreign assistance to stabilize its economy and promote the post-war recovery.
Pakistan
Population: 235 million
Main Industries: Textiles, agriculture, services, energy.
Key Exports: Textiles, rice, leather.
GDP:$338 billion
Per Capita GDP:$1,600
With low reserves and fiscal deficits, Pakistan’s economy is fragile, as evidenced by its $7 billion IMF debt.
In July 2023, the IMF approved a $3bn loan for the debt-laden country, immediately disbursing about $1.2bn to help with Pakistan’s balance of payments crisis.
Pakistan’s prime minister, Shehbaz Sharif, said in March 2024 that another IMF bailout was inevitable.
Ecuador
Population:18 million
Main Industries: Petroleum, agriculture, manufacturing.
Key Exports: Crude oil, bananas, shrimp.
GDP:$119 billion
Per Capita GDP: $6,166
Ecuador owes $6 billion to the IMF. Its economy heavily relies on oil exports, making it vulnerable to global price swings.
Ecuador received approximately $700 million from the IMF at the end of 2022, fulfilling a $6.5 billion loan program that was agreed upon in September 2020. Ecuador had not finished an IMF program in over 20 years, until this one.
In March 2024, Julie Kozack, a spokeswoman for the IMF, stated that Ecuadorian officials had formally asked to start talking with the Fund “a few weeks ago” about starting a new program.
Colombia
Population:52 million
Main Industries: Oil, mining, agriculture, manufacturing.
Key Exports: Crude oil, coal, coffee, flowers.
GDP: $364 billion
Per Capita GDP: $6,850
Colombia’s $3 billion IMF debt (0.8% of GDP) is relatively low.
It was the only other Latin American country to feature in the top 10 IMF debtors.
The nation and the IMF have a lengthy history that dates to the 1950s. The IMF stated in March 2024 that although Colombia has very strong economic fundamentals and policies, supply chain disruptions, tighter global financial conditions, and increased geopolitical tensions pose risks to the country.
The economy has shown resilience, driven by strong oil and coal exports. However, internal conflict and drug trafficking present ongoing challenges.
Angola
Population: 35.5 million
Main Industries:Oil and gas, diamonds, agriculture.
Key Exports:Crude oil, diamonds, refined petroleum.
GDP:$84 billion
Per Capita GDP: $2,333
Angola racked up $3 billion in IMF debt. Despite being one of Africa’s largest oil producers, high poverty rates and inequality persist.
Diversification efforts focus on agriculture and manufacturing to reduce dependency on oil and enhance economic resilience.
Kenya
Population: 54 million
Main Industries: Agriculture, tourism, finance services.
Key Exports:Tea, coffee, cut flowers.
GDP: $107 billion
Per Capita GDP: $1,813
Kenya’s has $3 billion in IMF debt. The country has been a frequent recipient of IMF programs aimed at stabilizing its economy and addressing persistent issues such as high public debt and budget deficits.
These loans are often tied to structural reforms, including enhancing tax collection, reducing fiscal deficits, and curbing corruption.
Ghana
Population: 33 million
Main Industries: Oil, mining, agriculture.
Key Exports: Gold, oil, cocoa.
GDP: $76 billion
Per Capita GDP: $2,066
Ghana’s $2 billion IMF debt (2.6% of GDP) underscores its economic challenges. As a leading gold producer, the country relies on commodity exports.
The country’s recent IMF program is aimed at restoring macroeconomic stability through measures such as reducing public spending, improving tax collection, and managing debt levels.
Despite these reforms, Ghana faces significant pressures, including high inflation, a depreciating currency, and a rising cost of living.
Economically, Ghana is heavily reliant on commodities like gold, cocoa, and oil. However, fluctuating global prices for these exports have made it difficult to maintain consistent growth.
Côte d’Ivoire
Population: 28 million
Main Industries: Agriculture, mining, energy.
Key Exports: Cocoa, coffee, rubber.
GDP: $78 billion
Per Capita GDP: $2,493
The country owes the IMF $2 billion. The programs in Côte d’Ivoire aim to support fiscal discipline, improve governance, and foster economic diversification. Key reforms include enhancing public financial management and increasing social spending to reduce poverty.
It is evident that these ten nations, despite their varied economic histories, share a common set of serious difficulties that have made them heavily dependent on IMF assistance.
Achieving a balance between growth, debt sustainability, and population social well-being will be critical to these countries’ long-term economic health as they endeavor to carry out the reforms mandated by the IMF.
