WASHINGTON (Reuters) – The board of the International Monetary Fund is set to approve $1.4 billion in emergency funding for Ukraine on Wednesday to help it respond to the Russian invasion, a report said. IMF Managing Director Kristalina Georgieva said on Tuesday.
Georgieva told a forum hosted by the Financial Times that the funding was on top of the $700 million given to Ukraine by the IMF in December and the $2.7 billion in emergency reserves it had received as part of an IMF allocation in August.
She said IMF staff were engaged in daily discussions with the Ukrainian authorities to help them manage the economic crisis triggered by the Russian invasion and mobilize financial support and resources.
The IMF chief said the war had caused a shock to the global economy, driving up energy and food prices, displacing millions and eroding business confidence.
“The unthinkable happened with Russia’s attack on Ukraine,” she said. “It’s tragic, and it’s also consequential.”
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The global lender was looking for the best way to support some of Ukraine’s immediate neighbors, including Moldova, which is seeking help, Georgieva said.
She said it was too early to predict the impact on the global economy of the war and the sweeping sanctions that the United States and its allies have imposed on Russia.
It was unclear how much the Russian economy might contract, but a recession was “a very likely outcome”, she said.
The World Bank’s board on Monday approved a $723 million loan and grant package for Ukraine, providing desperately needed government budget support as the country battles a Russian invasion.
(Reporting by Andrea Shalal and David Lawder; Editing by Michael Perry)
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