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IMF eyes expanded access to emergency aid for food shocks

The International Monetary Fund’s (IMF) executive board, under pressure to provide emergency funding to countries facing war-induced food price shocks, has reviewed a plan that would help Ukraine and other countries hit hard by Russia’s war, Reuters reported yesterday, citing sources familiar with the matter.

Developed by IMF staff in recent months, the plan would allow the IMF to support countries struggling with budget problems because of the war, without imposing conditions required in a regular fund programme. According to the report, board members were generally supportive heading into the meeting, and a formal vote backing the measure is likely before the Fund’s annual meetings in October. If approved, it would temporarily increase existing access limits and allow all member countries to borrow up to an additional 50% of their IMF quota under the IMF’s Rapid Financing Instrument, while low-income countries could tap the Rapid Credit Facility.

 

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