IMF Approves $1.3 Billion in Emergency ‘Food Shock’ Funding for Ukraine
The International Monetary Fund (IMF) has approved Ukraine’s request for $1.3 billion in emergency funding to help the war-torn country meet its urgent balance of payment needs and preserve financial stability.
The IMF’s executive board approved the funds on Oct. 7 under a new “food shock window” of its Rapid Financing Instrument (RFI).
The move seeks to address the growing risk of Ukraine’s debt becoming unsustainable, as the country’s economy has been decimated by war.
The IMF stated that Russia’s war against Ukraine has caused “tremendous human suffering and economic pain” and predicted a 35 percent contraction in Ukraine’s gross domestic product (GDP) in 2022….