IMF chief optimistic G7 funds for Ukraine can stave off hyperinflation By Reuters

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IMF chief optimistic G7 funds for Ukraine can stave off hyperinflation

Published May 19, 2022 13:12 Updated May 19, 2022 13:19

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IMF chief optimistic G7 funds for Ukraine can stave off hyperinflation

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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