Washington (Times Of Ocean)- IMF Director Kristalina Georgieva said Tuesday that the IMF is closely engaged with Ukraine on how to apply the best crisis management measures to prevent its economic collapse.
“I would say that money is important, but support in how to keep the financial system functioning is equally important,” Georgieva said in a live discussion held by US news publication Foreign Policy.
“The devastation of the Ukrainian economy breaks my heart. We are likely to see shrinkage that could be a third of what it was before the war. Imagine how that translates into hardship on people,” she said.
Georgiaeva noted that the IMF promptly responded to Ukraine’s request for $1.4 billion in emergency funds to keep the country running and to assist vulnerable people and the administration in securing water and electricity in war-affected areas.
The IMF chief said Russia’s war on Ukraine occurred during a period when the world economy was still recovering from the pandemic-induced crisis resulting from the Coronavirus.
“What we were striving for is for (global economic) growth to go up and inflation, which has become a problem, to go down. Instead, we have the exact opposite. Growth is going down, inflation is going up,” she said.
“We are assessing the impact of the war and the sanctions in different parts of the world in different categories of countries,” she added.
Georgiaeva said the first category of countries consists of countries that are close neighbors to Russia and Ukraine, which have relatively weak economies.
She noted that the number of refugees receiving countries grew to 3.3 million. The third group consists of countries that import energy and food from Russia and Ukraine.
“Higher energy and higher food prices mean devastation. We encourage countries to direct the little policy space they have to those that are most vulnerable,” she added. economic collapse