Ukraine Situation Pose ‘Significant Economic Risks’: IMF

This crisis comes at a “delicate” time, when the global economy is recovering from the ravages of the pandemic, and “threatens to undo some of that progress,” IMF Director said.

Feb 25, 2022

On Friday, the International Monetary Fund (IMF) Managing Director Kristalina Georgieva said this week’s events in Ukraine are “a matter of grave concern,” warning that the repercussions of the conflict pose “significant economic risks” in the region and around 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,” she added, noting that this crisis comes at a “delicate” time, when the global economy is recovering from the ravages of the pandemic, and “threatens to undo some of that progress.”

The IMF chief met earlier in the day with IMF Executive Board to brief Executive Directors on the initial assessment of the unfolding situation, and as the situation in Ukraine evolves, the multilateral lender will continue to discuss with the authorities how it can best assist them.

In addition to ongoing policy advice, the IMF is exploring all options for further financial support, including under the existing Stand-By Arrangement – IMF’s workhorse lending instrument for emerging and advanced market countries- for an outstanding amount of 2.2 billion U.S. dollars, Georgieva said, adding that the authorities have also requested IMF emergency financing.

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“We are assessing the potential (economic) implications, including for the functioning of the financial system, commodity markets, and the direct impact on countries with economic ties to the region,” she said.

“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,” she added.

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