TheCable

The International Monetary Fund (IMF) says Ukrainian authorities have requested emergency financing amid the ongoing invasion by Russian military forces.

Kristalina Georgieva, IMF managing director, disclosed this in a statement on Friday.

She said the repercussions of the conflict pose signficiant economic serious risks for Ukraine and other parts of the world.

“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,” Georgieva said.

“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 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.”

Georgieva said the Bretton Woods intitution is exploring numerous financing options to aid 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,” she said.

“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.”

Georgieva also said the IMF was assessing potential implications for the functioning of the global financial system on commodity markets and 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.