Inflation Caused By Ukraine’s War Put Most Countries In Trouble

Inflation caused by Ukraine’s war put most countries in trouble, IMF will increase emergency funding.

The Executive Board of the International Monetary Fund (IMF) on Monday considered a plan to provide emergency funds to countries facing pressure from rising food prices around the world due to the ongoing Ukraine war.

This plan of the IMF will help Ukraine, which has been attacked by Russia, and other countries suffering due to it, to face the inflation of food prices.

Inflation caused by Ukraine’s war put most countries in trouble: According to news of the leading news agency, in recent months, the IMF has prepared this plan.

Countries struggling with budget problems due to war will get IMF help without implementing the necessary conditions of a regular fund program.

However, the plan has not been formally approved yet, sources said. At present, most of the board members were generally supporting this draft in the meeting.

Formal voting for the plan is expected before the IMF’s annual meeting in October.

If this scheme is approved, it will temporarily increase the limit of the existing emergency fund assistance.

This will allow all member countries to borrow up to an additional 50% of their IMF quota under the IMF’s Rapid Financing Instrument.

Whereas low-income countries can take advantage of the rapid credit facility. This plan of IMF is simple and it can help many countries.

Significantly, after Russia’s attack on Ukraine, the supply of food items around the world has been affected.

Food prices around the world rose after the start of the war due to the closure of supply routes and a variety of trade restrictions.

However, last month’s UN-mediated agreement to restart grain exports from Ukrainian ports has improved grain trade and brought down its prices to some extent.

India handed over the 12th tranche of humanitarian aid to Ukraine, in favor of diplomatic efforts to end the conflict.

India on Monday handed over its 12th tranche of humanitarian aid to Ukraine as part of its effort to help the European nation ease economic hardships caused by the war with Russia.

This includes essential medicines and equipment. India had sent the first installment of humanitarian aid, which included medicines and other relief materials, to Ukraine via Poland on March 1.