Reading Comprehension Test 21

The International Monetary Fund (IMF) Executive Board approved on September 30 a new, temporary Food Shock Window (FS1N) under its emergency financing instruments (Rapid Credit Facility-RCF/Rapid Financing Instrument-RFI). A combination of climate shocks and the pandemic has disrupted food production and distribution, driving (A) the cost of feeding people and families. Russia’s  invasion of Ukraine has pushed the price of food and fertilizers even higher and exacerbated the shortages in food supplies—hurting food importers and some exporters alike.

The Food Shock Window will provide, for a period of a year, a new channel for emergency. Fund financing to member countries that have an urgent balance of payment needs due to acute food insecurity, a sharp increase in their food import bill, or a shock to their cereal exports. Access will be consistent with the actual balance of payments needs, capped at 50 percent of the quota, and will be added to the current annual access limits under the RCF/RFI.

The cumulative access limits under the RFI regular window and the RCF exogenous shock window, currently at 150 percent of quota, will be increased to 175 percent of quota for members that will borrow through the FSW. A review is planned for the end of June 2023. The Executive Board also amended the policy tar Staff-Monitored Programs (SMPs), to allow for Program Monitoring with Board involvement (PMB) .The Executive Boards role will be limited to assessing the robustness of the members policies to meet the program’s objectives and to monitoring program implementation, including policies aiming to facilitate the transition to an upper credit tranche (UCT) quality IMF- supported program. Countries considering an SMP would be encouraged to request a PMB if they are the subject of an ongoing concerted international effort by creditors or donors to provide substantial new financing or debt relief, or have significant outstanding Fund credit under emergency financing instruments. The PMB will be reviewed before the end of September 2023.