We’re committed to tackling food, financial crisis facing global economy – IMF

The International Monetary Fund (IMF) has reiterated its commitment to tackling food crisis and payment challenges facing the global economy.

Its Managing Director, Ms. Kristalina Georgieva, stated this after the IMF’s Executive Board approved a new Food Shock Window under its emergency financing instruments, the Rapid Credit Facility and Rapid Financing Instrument.

“The new financing window will provide additional access to emergency financing to countries that have urgent balance of payments needs and are suffering from acute food insecurity, a sharp food imports shock, or from a cereals export shock. The new financing window will be open for one year,” she said.

She continued: “For some time, the combination of climate shocks, the pandemic, and regional conflicts have disrupted food production and distribution, driving up the cost of feeding people and families. Russia’s war in Ukraine has pushed the price of food and fertilizer even higher—hurting food importers and some exporters. As a result, a food crisis is spreading around the globe with a record 345 million people whose lives and livelihoods are in immediate danger from acute food insecurity.

“The IMF, working with partner institutions, is actively contributing to the international response to food insecurity, notably by providing policy advice and financial assistance. The newly established Food Shock Window will provide an additional line of defence after grants and concessional financing.’’

Georgieva added: “We have worked extensively and expeditiously with our members and staff to finalize the proposal for the new Food Shock Window.

“At a time of such need and suffering, I am grateful to our membership and proud that the Fund has come together and responded so swiftly. We have worked with our members to secure additional channeling of SDRs which can help provide support to low-income countries through this new food shock window.

“With this new financing window, the IMF will be providing additional assistance to help people in vulnerable countries deal with one of the worst crises of all: hunger”.