Bloomberg News reports that International Monetary Fund is exploring options for aiding nations reeling under food shock across the globe. This is an effect of the ongoing war between Ukraine and Russia, and as such, the IMF is contemplating how it can help these member nations as a last refuge.
There has been a proposal from the International Monetary Fund that the institute must enhance access to emergency financing for at least one year to the countries with low income or nations that are most susceptible to alterations in the cost of food, which has been observed as skyrocketing, as revealed by the Kristalina Georgieva, the Managing Director while talking to the president of Center for Global Development, Masood Ahmed in a virtual interview.
While speaking in an interview, Georgieva stated that at least 50 countries would likely meet the eligibility criteria for availing of the benefits, with at least 20 to 30 of them requiring prompt help.
Across the globe, consumers have been struggling with a deepening crisis related to cost-of-living standards triggered by inflation in food and fuel, showing very slow signs of easing out sooner. The higher prices have given rise to a surge in interest rates which has made the debt payments expensive and instilled worry about financing in emerging markets and low-income countries. Georgieva also stated that this fund that the IMF will offer would ideally help innocent onlookers who get adversely affected due to global shocks.
She also said that they are planning to build and explore options for building funds with the help of which funds for today and tomorrow can be built to meet emergency needs. She stated that the main focus is to understand that the world has changed dramatically, and they need to keep pace with the same or perhaps remain ahead.
In Working with Ukraine
The International Monetary Fund is working on a long-term and deeper program with Ukraine, including an upcoming IMF mission in the next few weeks. The chief of the fund on this eve discussed Argentina as well, the largest borrower of IMF, with Sergio Massa, the new economy minister of the country, for the first time since taking office.
Georgieva revealed the composition of the team was impressive that visited Washington, which also included the country’s central bank governor and other top officials.
