The IMF expands access to emergency financing, as a result of

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The International Monetary Fund is looking for solutions to provide emergency financing to countries facing food price imbalances, and will discuss the measures at Monday’s Executive Committee meeting, sources told Reuters on condition of anonymity.

The plan, which has not been previously reported, will be presented at an informal meeting of the IMF’s Executive Board.

The measures provide for IMF support to Ukraine and other countries severely affected by the war started by Russia, without imposing the conditions required in a regular financing program. The scope and scope are not yet clear, the sources said.

The official vote to support the measure, developed by the IMF team in recent months, is expected before the IMF’s annual meeting in October. If the plan is approved, it will temporarily increase the existing access limit and allow all member states to borrow up to an additional 50% of their quota at the IMF under the Rapid Financing Facility and the Rapid Credit Facility.

“The concept is simple, but it could help many countries”, appreciate the sources.

Globally, food prices have risen significantly, following the blocking of supply routes, sanctions and other trade restrictions, although the agreement reached by the United Nations last month allowed the resumption of grain exports from Ukrainian ports and led to lower prices.

The financial institution based in Washington estimated in July that this year inflation will reach 6.6% in advanced economies and 9.5% in emerging and developing economies, which represents “clear risks” to macroeconomic stability current and future.

Many countries in Africa and other poor countries, which are facing food shortages and hunger, have asked for increased funds, but it is still not possible to accurately assess the number of countries that will request additional financial aid.

An IMF spokesman told Reuters last week that the global financial institution “continues to work closely with the Ukrainian authorities and is currently exploring all feasible options to provide additional support to Ukraine in these difficult circumstances.”

In many developing countries, food is at the top of inflationary baskets – the selection of goods used to calculate the cost of living – according to IMF data.