By Olajide Meseko
The International Monetary Fund (IMF) has announced a $2. 2 billion support for Ukraine, following the invasion of that country by Russia.
Ms. Kristalina Georgieva, Managing Director of of the IMF, announced the support in a statement, Saturday.
According to Ms. Georgieva, the economic consequences of the invasion would go beyond Ukraine as it would affect other parts of the world.
According to the IMF boss, “This week’s events in Ukraine are a matter of grave concern—first and foremost due to the human toll and suffering of ordinary people. The conflict is also having a serious economic impact, which will worsen the longer it continues.
“This crisis comes at a delicate time, when the global economy is recovering from the ravages of the COVID-19 pandemic, and threatens to undo some of that progress.
“Today (yesterday) I met with our Executive Board to brief Executive Directors on our initial assessment of the unfolding situation. I assured them that our staff will continue to work closely with the authorities to support Ukraine in every way we can.
“We will also continue to work hand in hand with the World Bank Group and other partners to coordinate our support and ensure the maximum benefit for Ukraine.
“The Fund has a number of instruments in its toolkit and, as the situation in Ukraine evolves, we will continue to discuss with the authorities how we can best assist them.
“These discussions are being conducted remotely with staff participating from Washington. In addition to ongoing policy advice, we are exploring all options for further financial support, including under the existing Stand-By Arrangement for an outstanding amount of US$2.2 billion. The authorities have also requested IMF emergency financing.
“Beyond Ukraine, the repercussions of the conflict pose significant economic risks in the region and around the world.
“We are assessing the potential implications, including for the functioning of the financial system, commodity markets, and the direct impact on countries with economic ties to the region. We stand ready to support our members as needed, in close coordination with our international partners.”