IMF Managing Director Kristalina Georgieva said on Thursday that she was “growing optimistic” that a G7 agreement could be reached on new fiscal financing for Ukraine and that it could help the country avoid hyperinflation.
On the sidelines of a meeting of G7 finance ministers and central bank governors, Georgieva said the main issue for funding would be time – avoiding delays that could push the country into monetary financing, where its central bank is effectively financing government.
“You know what happens if a country has to go for monetary financing. A war brings hyperinflation and then terrible, terrible damage – which we believe we can avoid,” Georgieva said.
Source: Capital
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