WASHINGTON – The International Monetary Fund’s (IMF) board is expected to approve a new “food shock window” in the next few weeks that would allow the global lender to provide emergency financing to Ukraine, the fund’s European division chief said Thursday.
Alfred Kamer said at a conference hosted by Bloomberg that the Ukrainian government and its central bank deserve “huge credit” for managing the economic shocks caused by Russia’s invasion of the country on February 24.
He said the IMF mission would study Ukraine’s budget plans and the monetary and fiscal policy mix in late October, and stressed that the central bank needed to avoid printing money to finance its budget deficit, focusing on tax revenue instead.
The fund provided $1.4 billion in emergency assistance to Ukraine in March, shortly after the war began, and has worked with the authorities with great success, using “conventional and unconventional” measures to stabilize the macro economy.
Kamer said Ukraine could receive another $1.3 billion in emergency aid when the IMF board approves expanding access to the Rapid Financing Instrument (RFI) for countries experiencing food shocks as a result of the war.
Kamer said the vote was expected in the next few weeks, and a source familiar with the matter said it was likely to take place on September 30.
“We are discussing with Ukraine a framework for macro stabilization…it will help Ukraine in terms of internal coordination of policies, it will help in terms of identifying external funding needs, and it will help donors to provide this funding in a timely manner,” he said.
Kamer said the fund has been in close contact with Ukrainian authorities since the war began, and is now discussing more formal monitoring arrangements.
“What we are aiming for in the end – this leads us towards a full program of the IMF,” he added, noting that the situation was difficult since planning was only possible on a “monthly” basis in the given month. the ongoing war. – Reuters