Ukraine situation will impact global economy – IMF MD

WASHINGTON, DC, Feb 26 – The ongoing conflict between Russia and Ukraine will have serious economic impact and this will worsen if the situation continues, said Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF).

In a press statement released Friday, Kristalina expressed her concerns on the Ukraine situation, pointing to “first and foremost due to the human toll and suffering of ordinary people.”

She said the crisis had also come at a delicate time, when the global economy was recovering from the ravages of the COVID-19 pandemic, and threatened to undo some of that progress.

“Today I met with our Executive Board to brief Executive Directors on our initial assessment of the unfolding situation. I assured them that our staff will continue to work closely with the authorities to support Ukraine in every way we can. We will also continue to work hand in hand with the World Bank Group and other partners to coordinate our support and ensure the maximum benefit for Ukraine.

“The Fund has a number of instruments in its toolkit and, as the situation in Ukraine evolves, we will continue to discuss with the authorities how we can best assist them. These discussions are being conducted remotely with staff participating from Washington. In addition to ongoing policy advice, we are exploring all options for further financial support, including under the existing Stand-By Arrangement for an outstanding amount of US$2.2 billion. The authorities have also requested IMF emergency financing.

“Beyond Ukraine, the repercussions of the conflict pose significant economic risks in the region and around the world. We are assessing the potential implications, including for the functioning of the financial system, commodity markets, and the direct impact on countries with economic ties to the region. We stand ready to support our members as needed, in close coordination with our international partners.”