IMF may expand funding if food prices rise

The International Monetary Fund is looking for ways to provide emergency funding to countries facing war-induced food price shocks and will discuss measures at an executive board meeting on September 12, Report informs referring to Reuters.

The plan, which has not previously been reported, will be presented at an informal board session.

It would allow the IMF to help Ukraine and other countries hit hard by Russia's war in Ukraine without imposing conditions required in a regular fund program, said the sources, who asked not to be named since the matter is still under review. The size and scope of the measures was not yet clear.

A formal vote backing the measure - which has been developed by the IMF staff in recent months - is expected before the Fund's annual meetings in October, the sources said.

If approved, it would temporarily increase existing access limits and allow all member countries to borrow up to an additional 50% of their IMF quota under the IMF's Rapid Financing Instrument, and the Rapid Credit Instrument that serves low-income countries, the sources said.

"The concept is simple, but it could help many countries," said one of the sources.

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