By Clara Nwachukwu
The International Monetary Fund (IMF) Executive Board, Friday, announced a new lending window to help low income countries address food insecurity, which will be open for one year.
IMF Managing Director, Ms. Kristalina Georgieva, who disclosed this in a statement, said the new Food Shock Window was approved “under our emergency financing instruments, the Rapid Credit Facility and Rapid Financing Instrument.”
She explained that “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.”
“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 said.
Georgieva noted that the new financing window came about as a result of the combination of climate shocks, the pandemic and regional conflicts, which have disrupted food production and distribution, thereby driving up the cost of feeding people and families.
“Russia’s war in Ukraine has pushed the price of food and fertilizers even higher—hurting food importers and some exporters. 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 insecurity.
“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.
“We have worked extensively and expeditiously with our members and staff to finalize the proposal for the new Food Shock Window.”
Georgieva expressed her gratitude to the Fund members for coming together and responded so swiftly “at a time of such need and suffering.”
“We have worked with our members to secure additional channelling of SDRs, which can help provide support to low‑income countries through this new food shock window,” she added.
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.
