© 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.
IMF chief optimistic G7 funds for Ukraine can stave off hyperinflation