IMF sets up food shock window to help 'starving' nations
WASHINGTON, October 1, 2022
The International Monetary Fund (IMF) said its executive board has approved a new emergency financing instrument for countries suffering from acute food insecurity.
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.
Welcoming the key initiative, IMF Managing Director Kristalina Georgieva said: "I am very pleased to announce that our 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. It will be open for one year,'' she stated.
According to her, the IMF, working with partner institutions, is actively contributing to the international response to food insecurity, notably by providing policy advice and financial assistance.
The newly established Food Shock Window will provide an additional line of defence after grants and concessional financing, stated Georgieva.
The IMF, she said, had worked extensively and expeditiously with its members and staff to finalize the proposal for the new Food Shock Window.
"For some time now, the combination of climate shocks, the pandemic and regional conflicts has disrupted food production and distribution, driving up the cost of feeding people and families. As a result, a food crisis is spreading around the globe with a record 345 million people whose lives and livelihoods are in immediate danger from acute food security.
''At a time of such need and suffering, I am grateful to our membership and proud that the Fund has come together and responded so swiftly. We have worked with our members to secure additional channeling of SDRs which can help provide support to low-income countries through this new food shock window," noted Georgieva.
"With this new financing window, the IMF will be providing additional assistance to help people in vulnerable countries deal with one of the worst crises of all: hunger," she added-TradeArabia News Service
