IMF confirms ‘food shock window’ plan to assist countries with food crisis

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Last Updated on 1 week by Mukesh

The International Monetary Fund (IMF) on Tuesday announced that it is moving forward to increase the emergency funds for nations affected by rising food prices and shortages brought on by the Russia-Ukraine crisis, with nearly 20 to 30 countries in urgent need.

IMF Managing Director Kristalina Georgieva and board members are both quite positive and hopeful about the plan “food shock window” and hope to get it approved so that the funds can be distributed accordingly.

Also read | IMF greenlights revival of Pakistan loan programme

The plan would enable the IMF to offer additional, unconditional emergency financing to severely affected countries by the food crisis brought on by global inflation, and Russia’s invasion of Ukraine, Reuters reported.

She claimed that the plan would benefit low-income food-importing countries that have seen their expenses soar, or others like Ukraine, whose exports have been halted because of the invasion. She further predicted that approximately 50 nations would be eligible for the programme.

Also read | Bangladesh seeks bailout package from IMF as huge import bill takes toll on economy

As per a source familiar with the plan, the proposal discussed would temporarily raise the access limits and permit member countries to borrow up to 50 per cent of their IMF quota, with low-income countries having access to the Rapid Credit Facility.

The IMF has always been funding and helping nations with all the necessary funds and aid required.

The organsiation since the start of the pandemic has funded more than $268 billion to 93 countries, Gerry Rice, spokesman for the IMF, said. He further added that the fund had been given to 57 low-income countries with loans totaling $27 billion, and it’s still urging its member countries for financial support.

(With inputs from agencies)

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