The Executive Board of the International Monetary Fund (IMF) has approved a new emergency lending tool for nations experiencing severe food shortages.
“I am very pleased to announce that the IMF’s Executive Board today approved a new Food Shock Window under our 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.”
According to Ms. Georgieva, food production and distribution have been hampered for some time due to a mix of climate shocks, the pandemic, and local conflicts, which has increased the expense of feeding individuals and families.
She claimed that the conflict between Russia and Ukraine has increased the cost of food and fertilizer, harming both some exporters and food importers.
According to the managing director, this has caused a food crisis that is spreading around the world, endangering the lives and livelihoods of a record 345 million people.
She said that the IMF, in collaboration with other institutions, was actively assisting in the global effort to combat food insecurity, particularly by offering financial support and policy recommendations.
After grants and concessional funding, Ms. Georgieva said the recently established Food Shock Window will offer a third line of defense.
She claims that we have worked hard and quickly to complete the proposal for the new Food Shock Window with the help of our members and employees.
“I am grateful to our membership and proud that the fund has united and reacted so quickly in this time of such need and sorrow.
“We have collaborated with our members to acquire extra Special Drawing Rights (SDR) channels that can help support low-income countries through this new food crisis window.
“The IMF will be offering more assistance through this new lending window to enable people in vulnerable countries cope with one of the worst crises,”