IMF warns “severe impact” on world economy due to war in Ukraine

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The International Monetary Fund (IMF) warned this Saturday that the war in Ukraine will have a “severe impact” on the World economy and warned that countries with economic ties with Kyiv and Moscow are exposed to higher risks.

“The current war and the sanctions associated with it will have a severe impact on the global economy,” the financial organization said in a statement.

The Fund explained that nations with economic ties to Russia and Ukraine are at “special risk” and could be exposed to shortages of goods, as well as disruptions in supply chains.

Those countries, moreover, are the ones that are hosting the largest number of refugees from Ukraine, the IMF said.

As a result of these pressures, Moldova has already requested an increase and certain changes to the debt program it has with the IMF and Fund staff are currently discussing different options with the Moldovan authorities, the statement detailed.

After the beginning of the Russian invasion, the Ukrainian government asked the IMF for emergency financial aid worth 1,400 million dollars and, as detailed this Saturday, this issue will be evaluated “at the earliest next week” by the Board of Governors of the Background.

The managing director of the institution, Kristalina Georgievassessed Ukraine’s request and the possible economic impact of the war during a meeting on Friday.

After months of tensions, Russia invaded Ukraine ten days ago and began bombing major cities, causing more than 2,000 civilian deaths, according to provisional figures from the Ukrainian State Emergency Service, and the flight of more than a million people, according to with the UN Refugee Agency (UNHCR).

EFE

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