IMF Governing Board Has Supported ‘Food Shock Window’, Supporting Ukraine and Other Countries According to Reuters

© Reuters. FILE PHOTO: The logo of the International Monetary Fund (IMF) is seen outside the headquarters building in Washington, U.S., September 4, 2018. REUTERS / Yuri Gripas / File Photo

By Andrea Shaal

WASHINGTON (Reuters) – The Board of Directors of the International Monetary Fund is expected to adopt a new “food shock window” in the next few weeks that would allow the global lender to provide emergency funding to Ukraine, the head of the fund’s European division said on Thursday.

Alfred Kammer told a conference hosted by Bloomberg that the Ukrainian government and its central bank deserve “great credit” in managing the economic shocks caused by the Russian invasion on the 24th. February.

He said an IMF delegation will examine Ukraine’s budget plans and the fiscal-monetary policy mix at the end of October, stressing that the central bank needs to avoid printing money to compensate. budget deficit, while focusing on tax revenue.

The fund provided $1.4 billion in emergency assistance to Ukraine in March, shortly after the war began, and has worked with authorities with great success, using “orthodox and informal” to stabilize the macro-economy.

Mr. Kammer said Ukraine could receive an additional $1.3 billion in emergency assistance when the IMF board approves expanding access to the Rapid Financial Instruments (RFI) to countries experiencing a financial crisis. food shock as a result of war.

Kammer said that the vote is expected to take place in the next few weeks, and a source familiar with the matter said it is likely to take place on September 30.

“We are in discussions with Ukraine about a macro-stabilization framework … that will help Ukraine coordinate its internal policy, it will help identify external financing needs and will help donors to source resources,” he said. that financing in a timely manner,” he said.

Kammer said the foundation has remained in close contact with Ukrainian authorities since the war began and is currently discussing a more formal monitoring agreement.

“Ultimately what we’re aiming for – this is leading to a complete IMF programme,” he added, noting that the situation is challenging as planning is only possible on a facility “month by month” in the month given. the war is going on.

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