IMF, World Bank to extend all support to Ukraine amid Russian invasion: IMF’s managing director

Doaa A.Moneim , Saturday 26 Feb 2022

The International Monetary Fund (IMF) will work hand-in-hand with the World Bank Group (WBG) and other partners to coordinate support for Ukraine amid the Russian invasion, the IMF’s managing director Kristalina Georgieva stated on Friday.

Kyiv
Firefighters extinguish fire in a high-rise apartment block which was hit by recent shelling in Kyiv on February 26, 2022. AFP

“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,” said Georgieva.

Georgieva expounded that she met with the IMF’s Executive Board on Friday to brief Executive Directors on the Fund’s initial assessment of the ongoing situation.

“I assured them that our staff will continue to work closely with the authorities to support Ukraine in every way we can,” according to Georgieva.

In this respect, Georgieva expounded that the Fund has a number of instruments that could be utilised to support Ukraine, adding that the Fund is exploring all options for further financial support for the country, including under the IMF’s Stand-By Arrangement for an outstanding amount of $2.2 billion, especially as the Ukrainian authorities have already requested IMF emergency financing.  

She added that discussions are being conducted remotely with staff participating from Washington in this regard.

“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,” Georgieva explained.

On Thursday, the WBG’s president David Malpass said that the Group stands ready to provide immediate support to Ukraine, adding that it is preparing options for such support, including fast-disbursing financing.

“The World Bank Group is also in active dialogue to support neighbouring countries and people that may be affected by this conflict and will make additional resources available,” he added.

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