IMF’s board seen backing ‘food shock window,’ aiding Ukraine and others
By Andrea Shalal
WASHINGTON (Reuters) -The Worldwide Financial Fund’s board is anticipated to approve a brand new “meals shock window” within the subsequent few weeks that can enable the worldwide lender to supply emergency funding to Ukraine, the pinnacle of the fund’s European division mentioned on Thursday.
Alfred Kammer advised a convention hosted by Bloomberg that the Ukrainian authorities and its central financial institution deserved “large credit score” for managing the financial shocks brought on by Russia’s invasion of the nation on Feb. 24.
He mentioned an IMF mission would study Ukraine’s funds plans and the fiscal-monetary coverage combine in late October, and pressured that the central financial institution wanted to keep away from printing cash to finance its funds deficit, whereas specializing in tax revenues as a substitute.
The fund offered $1.4 billion in emergency help to Ukraine in March, shortly after the struggle started, and labored with authorities with nice success, utilizing “orthodox and unorthodox” measures to stabilize the macroeconomy.
Ukraine might obtain one other $1.3 billion in emergency help when the IMF’s board approves expanded entry to its Speedy Finance Instrument (RFI) for nations experiencing meals shocks because of the struggle, Kammer mentioned.
Kammer mentioned that vote was anticipated within the subsequent few weeks, and a supply aware of the matter mentioned it was more likely to happen on Sept. 30.
“We’re discussing with Ukraine a macro stabilization framework … that can assist Ukraine by way of inside coordination of insurance policies, it should assist by way of figuring out the exterior financing wants, and it’ll assist donors to supply that financing in a well timed method,” he mentioned.
Kammer mentioned the fund had remained in shut contact with Ukrainian authorities because the struggle started, and was now discussing a extra formal monitoring association.
“What we’re aiming at finally – that is main in direction of a fully-fledged IMF program,” he added, noting that the state of affairs was difficult provided that planning was solely attainable on a “month-to-month” foundation on the month given the continued struggle.
(Reporting by Andrea Shalal; Modifying by Chizu Nomiyama and Daniel Wallis)
