IMF projects $2.5 billion in 2026 net income despite high uncertainty

The International Monetary Fund said on Friday its board expects net income of about $2.5 billion in the 2026 financial year, following the annual review of its income position for the year ended April 30.

"Projections of the Fund's income position remain subject to high uncertainty, including from heightened geopolitical risks and financial market volatility," the IMF said.

The IMF's board in April approved a net administrative budget for the 2027 financial year, totaling $1.6 billion, which will cover a period of about one year from May 1, according to a separate statement on Friday.

The fund said its precautionary balances, which provide a buffer to protect it against potential losses from credit, income and other financial risks, are expected to rise to $35.9 billion by the end of the 2026 financial year, above the IMF's medium-term target.

Looking ahead, the IMF projected net income of about $2.6 billion in each of the 2027 and 2028 financial years.

The executive board agreed to keep the margin on the IMF's basic lending rate at 60 basis points above the special drawing rights interest rate for the 2027 to 2028 period, maintaining current pricing for member countries that borrow from the fund.

-Mrinmay Dey/Reuters