IMF Is Looking for Ways to Urgently and Fully Help Ukraine

by Olha Povaliaieva
Monday, September 12, 2022
IMF Is Looking for Ways to Urgently and Fully Help Ukraine

The organisation plans to provide emergency funding to countries whose food prices have increased due to the war

According to Reuters, the International Monetary Fund is worried about food prices in countries that will not be able to overcome the food crisis on their own. Measures to help such countries, including Ukraine, will be discussed at today's official meeting.

"It would allow the IMF to help Ukraine and other countries hit hard by Russia's war in Ukraine without imposing conditions required in a regular fund program,'' said the anonymous source to Reuters.

The vote on the emergency plan will take place in October. If the plan is adopted, the IMF will temporarily increase access limits and allow member countries to borrow up to 50% of their quota. The Fund will temporarily increase existing access lets and let all member countries borrow up to 50% of their IMF quota under the terms of the Rapid Financing Instrument and the Rapid Credit Instrument.

According to the Fund, they have already provided assistance to Ukraine in the crisis that arose against the backdrop of the war. However, this aid package is limited while the gives to provide a full-fledged financing package as Ukraine "scramble to keep the government running while fighting the first major war in Europe since WWII. According to IMF representatives, they "continues to closely engage with the Ukrainian authorities and is currently exploring all feasible options to provide further support to Ukraine in these challenging circumstances."

We remind you that earlier foreign creditors voted to defer Ukraine's payments on international obligations of $20 billion. However, from September, Ukraine is obliged to repay debts to the IMF for $635 million. In March, the Fund decided to allocate $1.4 billion under the RFI to mitigate this situation.

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