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HomeNationalWar induced food price shocks, IMF looking for funding as emergency aid

War induced food price shocks, IMF looking for funding as emergency aid

Food and energy have been the main drivers of global inflation, Global lender

The International Monetary Fund (IMF) has said that food and energy have been the main drivers of global inflation.

The IMF has been looking for ways to provide funding to the countries that have been facing food price shocks because of war induction. The measures would be discussed in the executive board meeting to be held on Monday.

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The informal board session will be presented with the plan that would allow the global lender to help countries hardly hit by Russia-Ukraine war.

According to media reports, the plan would help the countries without imposing any conditions. However, the size and scope of the measures has still not been told as the matter was still under review.

Media reports have claimed that before the annual meetings in October a formal vote backing the measure has been expected. It would help the member countries an additional 50 percent of their quota borrowing under the Rapid Financing Instrument (RFI) of the IMF.

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After the Russo-Ukraine war started the food prices have surged globally due to blocked supply routes and trade restrictions.

IMF has said that the inflation would pose a clear risk to macroeconomic stability as it had predicted that the inflation would reach to 6.6 percent in advanced countries and 9.5 percent in developing countries.

According to reports, many African countries have raised voices for increased funds due to food shortages and hunger. However, it has not yet been made clear as which or how many countries would seek additional financing aid.

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