The International Monetary Fund has generated about 2.5 billion euros in profits from the loans it has paid out to Greece, according to a report by British NGO Jubilee Debt Campaign. Should the Greek government fully pay off the IMF by 2024, then the profits will increase to 4.3 billion euros.
At present, the effective interest rate that Greece is paying for the IMF loans is 3.6% – far higher than the 0.9% rate which it needs to cover the loan cost. If Greece repaid the IMF with a 0.9% interest rate from 2010, then it would have saved 2.5 billion euros in interest rate fees.
The NGO’s economist Tim Jones argued that the bailout loans from the IMF, EU and ECB ended up benefiting reckless bands, rather than the Greek people.
