An official of the International Monetary Fund (IMF) said Thursday that the current banking crisis sweeping US and Europe needs “continued vigilance is warranted.
“Policy makers have taken rapid action, and this rapid action has included coordinated action by major central banks to enhance the provision of U.S. dollar liquidity,” IMF spokesperson Julie Kozack said in a press briefing.
“These actions have eased market stress to some extent, (but) at the same time, uncertainty remains high and continued vigilance is warranted,” she added.
Kozack noted that Ukraine, because of Russia’s war, will have large financing needs this year.
“We’re operating in an environment of very high uncertainty,” she told.
Kozack’s comments come after four US banks in the past two weeks have gone under — Silvergate Bank, Silicon Valley Bank (SVB), Signature Bank and First Republic Bank.
The IMF and the Ukrainian authorities reached an agreement Tuesday on a new $15.6 billion loan program for financial stability to support economic recovery in post-war reconstruction.
CURRENTPH NEWS SERVICE