October 2, 2022
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IMF’s board seen backing ‘food shock window,’ aiding Ukraine and others

WASHINGTON — The board of the International Monetary Fund (IMF) is expected to approve a new “food shock window” in the next few weeks that will allow the global lender to provide emergency funding to Ukraine, the head of the fund’s European division mentioned on Thursday.

Alfred Kammer instructed a convention hosted by Bloomberg that the Ukrainian authorities and its central financial institution deserved “huge credit” for managing the financial shocks attributable to Russia’s invasion of the nation on Feb. 24.

He mentioned an IMF mission would look at 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 conflict 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 Fast Finance Instrument (RFI) for international locations experiencing meals shocks on account of the conflict, Mr. Kammer mentioned.

Mr. Kammer mentioned {that a} vote was anticipated within the subsequent few weeks, and a supply acquainted with the matter mentioned it was prone to happen on Sept. 30.

“We are discussing with Ukraine a macro stabilization framework … that will help Ukraine in terms of internal coordination of policies, it will help in terms of identifying the external financing needs, and it will help donors to provide that financing in a timely manner,” he mentioned.

Mr. Kammer mentioned the fund had remained in shut contact with Ukrainian authorities because the conflict started, and was now discussing a extra formal monitoring association.

“What we’re aiming at ultimately — this is leading towards a fully-fledged IMF program,” he added, noting that the state of affairs was difficult provided that planning was solely doable on a “month-to-month” foundation on the month given the continuing conflict. — Reuters

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