IMF MD Kristalina Georgieva said the crisis could impact the global economy’s post COVID recovery
Washington, DC, Feb 26 (The CONNECT) – The International Monetary Fund (IMF) has expressed “grave concern” over the developments on Ukraine front and said they could threaten to undo some of the progress made by the global economy post the COVID-19 pandemic.
IMF Managing Director Kristalina Georgieva said in a statement that 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, Georgieva said.
She said IMF 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,” she said
Beyond Ukraine, the repercussions of the conflict pose significant economic risks in the region and around the world, he pointed out and explained “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,” she added.