A total of $1.8 billion (SDR 1.4 billion) was disbursed by the international Monetary Fund (IMF) to countries under the Food Shock Window while it lasted.

The Food Shock window was a major innovation created by the Fund to address the global food crisis in member countries. It was initially set to operate for 12 months but was later extended to March 2024. The Fund worked closely with the World Bank, the World Food Programme, the World Trade Organization and the Food and Agriculture Organization both at headquarter and country levels and provided a response to the global food shock through the financing vehicle.

The Fund has equally contributed through policy advice, technical assistance and lending. Where needs and possible, financial support to countries affected by the global food shock has been delivered by the Fund through multi-year Fund-supported programs (Upper-Credit Tranche quality programs).

“Since September 2022, twenty-one countries affected by the global food shock have benefited from this type of programs. The Food Shock Window complemented this support in situations where UCT-quality programs were not feasible or not necessary”, it stated”.

According to the Fund, the global food shock and associated balance of payment pressures were expected to continue throughout 2023, but a 6-month extension was approved to allow the Food Shock Window to continue serving as a contingency tool in case members affected by this shock face urgent balance of payment needs, “and a UCT-quality program would not be feasible or not necessary”.

This extension also provided sufficient time to observe if the Food Shock Window can lapse without limiting the capacity of the Fund to support its members.

To ensure sufficient borrowing space under the emergency financing limits for those countries that have received support through the Food Shock Window, the Executive Board of the IMF has also approved the extension of additional 25 percent of quota added to the Cumulative Access Limit until end-2026 for countries that have accessed the Food Shock Window through the RFI and until the completion of the 2024/25 PRGT (Poverty Reduction Growth Trust) review for those that accessed the Food Shock Window through the RCF.

The Fund stated it will continue to work closely with its partners, using the whole range of its tools, to support countries affected by the global food shock.