Due to the war in Ukraine, the prices of food items are increasing all over the world.
The IMF is considering a plan to provide emergency funds to countries facing pressure.
It would provide IMF support without imposing the necessary conditions of a regular fund program.
Washington. The Executive Board of the International Monetary Fund (IMF) on Monday considered plans to provide emergency funding to countries facing pressure from rising food prices around the world due to the ongoing war in Ukraine. The IMF plan will help Ukraine and other countries affected by the Russian attack to deal with rising food prices.
According to a report by news agency Reuters, the IMF has prepared this scheme in recent months. This would allow countries facing budget problems due to the war to receive IMF aid without invoking the necessary conditions of a regular funding programme. However, the plan is yet to be formally approved, sources said. At present, most of the board members were generally supporting the draft in the meeting. Formal voting on the plan is expected ahead of the IMF’s annual meeting in October.
If the plan is approved, it will temporarily increase the emergency fund’s existing assistance limit. This will enable all member countries to borrow up to an additional 50% of their IMF quota under the IMF’s Rapid Financing Instrument. Whereas low-income countries can benefit from faster credit facilities. This plan of IMF is simple and it can help many countries.
Blackout in this Ukrainian city due to Russian attack, tweeted President Zelensky
Significantly, after Russia’s attack on Ukraine, the supply of food items around the world has been affected. Food prices rose around the world after the war broke out, due to supply routes being closed and various trade restrictions. However, a UN brokerage agreement last month to restart grain exports from Ukrainian ports has improved grain trade and eased some of the prices.
tags: america, Meal, International Monetary Fund, russia ukraine war, Ukraine
First Published: 13 September 2022, 07:14 IST