IMF eyes expanded access to emergency aid for food shocks
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IMF eyes expanded access to emergency aid for food shocks

IMF eyes expanded access to emergency aid for food shocks

 

The International Monetary Fund is looking for ways to provide emergency funding to countries facing war-induced food price shocks and will discuss measures at an executive board meeting on Monday, sources familiar with the matter told Reuters. 


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 sources, who asked not to be named since the matter is still under review. A formal vote backing the measure - which has been developed by the IMF staff in recent months - is expected before the Fund’s annual meetings in October, the sources said. 


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, and the Rapid Credit Instrument that serves low-income countries, the sources said. Many African countries and other poor nations suffering food shortages and acute hunger have clamored for increased funds, but it was not immediately clear how many countries would seek the additional financing aid. 


The IMF in March approved $1.4 billion in emergency funding for Ukraine under the RFI instrument to help meet urgent spending needs and mitigate the impact of the war. Russia’s war against Ukraine has altered global patterns of trade, production, and consumption of commodities in ways that will keep prices at historically high levels through the end of 2024, the World Bank reported in August.

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