Due to the Ukrainian war, rising food inflation around the world.
The IMF is considering a plan to provide emergency funds to countries facing pressure.
This will help the IMF without imposing the necessary conditions of a regular financing program.
Washington. The Executive Board of the International Monetary Fund (IMF) discussed on Monday a plan to provide emergency funds to countries facing pressure from rising food prices around the world due to the ongoing war in Ukraine. This IMF plan will help Ukraine, which was the victim of the Russian attack, and other countries suffering from it, to cope with food price inflation.
According to information from the Reuters news agency, in recent months the IMF has been preparing this plan. Because of this, countries with budgetary problems due to war will obtain IMF assistance without implementing the necessary conditions of a regular fund program. However, the plan has yet to be officially approved, sources said. Currently, most of the board members were generally supportive of this project at the meeting. A formal vote on the plan is expected before the IMF’s annual meeting in October.
If this scheme is approved, it will temporarily increase the limit of existing emergency fund assistance. This will allow all member countries to borrow up to an additional 50 percent of their IMF quota under the IMF’s Rapid Financing Instrument. While low income countries can take advantage of the rapid credit facility. This IMF plan is simple and can help many countries.
Blackout in this Ukrainian town due to Russian attack, President Zelensky alleges via tweet
Significantly, after Russia’s attack on Ukraine, the food supply in the world was affected. Food prices around the world rose after the start of the war due to the closure of supply routes and various trade restrictions. However, the agreement reached last month under the aegis of the UN to restart grain exports from Ukrainian ports has improved the grain trade and lowered its prices to some extent.
Keywords: America, Food, IMF, russia ukraine war, Ukraine
FIRST POST: September 13, 2022, 07:14 IST