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IMF chief optimistic G7 funds for Ukraine can stave off hyperinflation

© Reuters. FILE PHOTO: IMF Managing Director Kristalina Georgieva speaks during a conference hosted by the Vatican on economic solidarity, at the Vatican, February 5, 2020. REUTERS/Remo Casilli

KOENIGSWINTER, Germany (Reuters) – International Monetary Fund Managing Director Kristalina Georgieva said on Thursday she was “getting more optimistic” that a G7 agreement to provide new budget funding to Ukraine can be reached and can help the country avoid hyperinflation.

Georgieva said on the sidelines of a G7 finance ministers’ and central bank governors’ meeting that the main issue for the funding would be its timing – avoiding delays that may push the country into monetary financing, where its central bank effectively funds the government.

“You know, what happens if a country has to go into monetary financing. A war brings hyperinflation and then terrible, terrible, damage – which we think we can avoid,” Georgieva said.


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