The International Monetary Fund (IMF) said on Saturday that it would take Ukraine’s request for $1.4 billion in emergency funding to its executive board as early as next week.
And he said countries with close economic ties to Russia were also at risk of shortages and supply disruptions. The fund is also in talks with neighboring Moldova for aid options.
“The ongoing war and associated sanctions will also have a severe impact on the global economy,” the IMF said.
After a meeting on Friday led by Managing Director Kristalina Georgieva, the IMF said there were serious economic consequences in the region. Energy and wheat prices rose, putting pressure on inflation stemming from the pandemic and disruptions to the global supply chain.
“Price shocks will impact across the world, especially on poor households for whom food and fuel are a larger proportion of expenditures,” the IMF said in a statement. “If the conflict escalates, the economic damage will be even more devastating.”
The IMF said the effects of sanctions on Russia would also spread to other countries.
Monetary authorities around the world will have to carefully monitor rising prices in their countries, he added, and policies must be implemented to protect economically vulnerable families.
Ukraine, whose airports were damaged and are now closed, will face significant reconstruction costs, according to the IMF. The organization said earlier this week that the country has $2.2 billion available between now and June from a previously approved standby agreement.
Source: CNN Brasil
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