Term:
Commitment charge (or Fee)
Definition:
This is the charge made for holding available the undisbursed balance of a loan commitment. Typically, it is a fixed-rate charge (for example, 1.5 percent a year) calculated on the basis of the undisbursed balance.
Domain:
Finance
Source:
IMF, 2003, External Debt Statistics: Guide for Compilers and Users – Appendix III, Glossary, IMF, Washington DC
