IMF Countries Agree to Increase Funding, Israel-Gaza Situation Adds Economic Uncertainty

IMF nations to increase funding amid global economic uncertainties, impacted by Israel-Gaza conflict. Details on the funding boost and its implications.

Oct 14, 2023 - 10:20
Oct 14, 2023 - 10:21
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IMF Countries Agree to Increase Funding, Israel-Gaza Situation Adds Economic Uncertainty
IMF Countries Agree to Increase Funding, Israel-Gaza Situation Adds Economic Uncertainty

Countries in the International Monetary Fund (IMF) have decided to increase the funds available for lending by the end of the year. This decision was made during a meeting led by IMF Managing Director Kristalina Georgieva. She expressed concerns that the conflict between Israel and Gaza was contributing to worldwide economic unpredictability.

Following the meeting, Nadia Calvino, the chairperson, mentioned that specific details about the funding increase were still being worked out. However, she assured that this move was essential to uphold global financial stability.

A source familiar with the discussions revealed that the final phrasing of the official statement was yet to be settled.

It remains uncertain whether the International Financial and Monetary Committee will support a proposal from the United States. This plan suggests that countries should provide additional funds based on their current ownership shares. Such an approach could postpone benefits for rapidly growing markets like China.

Calvino, the Spanish economy minister and committee chair nearing the end of her term, confirmed that there was unanimous agreement on fundamental matters.

Georgieva, in a press conference, highlighted the seriousness of the Israel-Gaza conflict, which became increasingly apparent during this week's IMF-World Bank meetings. The situation evolved from attacks on innocent civilians in Israel to the urgent need to protect lives in Gaza.

"In our meetings, we witnessed the impact this had on people," Georgieva stated.

She mentioned that it was too early to determine how the conflict would affect the global economy.

"We acknowledge that this is yet another factor contributing to uncertainty," she added, emphasizing that much depended on the conflict's duration and extent.

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