Georgieva said the program would be available to countries that did not already have a larger IMF program, and estimated that some 50 countries would be eligible, of which 20 to 30 were expected to have the greatest need.
IMF spokesman Gerry Rice said the fund has lent over US$268 billion to 93 countries since the start of the pandemic and was looking at “all options to enhance our toolkit, including to help countries impacted by the food crisis.”
Further discussions were planned with the executive board to ensure formal approval of the changes, he said.
Rice said the fund had provided US$27 billion in loans to 57 low-income countries, and was continuing to encourage its member countries to “come to us early for needed financial support.”
The proposal discussed Monday would temporarily increase existing access limits and allow all member countries to borrow up to an additional 50 per cent of their IMF quota under the IMF’s Rapid Financing Instrument, with low-income countries able to tap the Rapid Credit Facility, sources familiar with the plan said.
Georgieva said she hoped it would be approved in time for the Fund’s annual meetings in October, they said.
Food prices – already hit by inflation – surged worldwide after the start of the Ukraine war due to blocked supply routes, sanctions and other trade restrictions, although a UN-brokered deal that allowed resumed exports of grain from Ukrainian ports has begun to ease trade flows and lower prices in recent weeks.
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