IMF expands Rapid Financing Instrument to provide more emergency financing to Ukraine

The IMF’s Executive Board approved on September 30 a new window under its emergency financing instruments, which will allow Ukraine to request a new disbursement under Rapid Financing Instrument.

That’s according to the National Bank of Ukraine, Ukrinform reports.

“The Fund’s new financing window – the so-called food shock window – will provide additional access to emergency financing to countries that have urgent balance of payments needs arising from the food crisis around the world,” the report reads.

Ukraine is planning to make use of this new window and will request about USD 1.3 billion in additional aid from the IMF, says the NBU.

"Under this facility, Ukraine will request about USD 1.3 billion in emergency financing from the IMF. Pending, the IMF’s Executive Board approval, these funds could arrive as soon as October.  We are grateful to the IMF for the assistance. We appreciate this support and the Fund’s rapid response in early March, when it allocated USD 1.4 billion in additional funding,” the central bank notes, adding that it also hopes for a new full-fledged IMF program for Ukraine to start “as soon as possible.”

“We are ready to implement such a program, even in the face of uncertainty as the war grinds on," NBU Governor Kyrylo Shevchenko emphasized.

Memo. The RFI opens up quick access to financial assistance for countries that urgently need to close their balance of payments gaps, in particular those arising from war.