The war in Ukraine will overshadow the still incomplete economic recovery from the pandemic the IMF announced in a press briefing today, Thursday March 17, 2022. The IMF is assessing the magnitude of the impact of the war on economic growth in the region. The main channels of shock transmission will be four-fold: energy prices and other supply disruptions, financial conditions, confidence, and migration.
The IMF is working to support several member’s needs for financing and support programs in the near term.
“Donors have expressed interest for the Fund to establish and administer a vehicle, a financing vehicle, through which they can channel their resources to support Ukraine. So, we are currently exploring the creation of again what we call this IMF administered account that would allow interested donors to pool and to channel resources, loans, and or grants to assist Ukraine in meeting the extraordinary balance of payments and budget needs arising from the war while supporting macroeconomic stability,” said Gerry Rice, Director of the Communications Department at the IMF.
On Lebanon, Rice announced that the IMF expects another mission before the end of the month.
“Our discussions with the Lebanese authorities are continuing and included a recent staff visit. I can tell you that we expect another staff mission to Lebanon before the end of this month. We remain closely engaged, of course. We are trying to work with the Lebanese authorities to formulate a reform program that can address the severe economic financial challenges Lebanon is facing. I, I would say the discussions are progressing well, but extensive work is needed in the period ahead. Lebanon's challenges are deep and complex. They will require time and commitment,” said Rice.
The IMF has received from the Tunisian authorities a request for a new IMF supported program. IMF Staff is currently holding technical discussions with the Tunisian authorities on their reform intentions and on the economic reform program which they recently shared with the IMF.
“On Tunisia. As you probably know, we have received from the Tunisian authorities a request for an IMF supported program. The IMF has always been and will continue to be a strong partner for Tunisia. So, over the past several months, we've been in close consultation with the Tunisian authorities. We've had technical discussions on their policy intentions and their economic reform program to consider launching a new financing support program from the IMF. What I can tell you Delphine, a small staff team from the IMF plans to visit Tunisia for further discussions with the authorities later this month. OK. Later on in March, to build on what I would characterize as the good progress that has been made in understanding their reform policies,” said Rice.
To watch the full briefing, click here.