IMF seeks war driving up to USD50bn bailout demand

International Monetary Fund chief Kristalina Georgieva on Thursday said the global lender expected near-term demand for IMF financial support to rise to between USD20 billion to USD50 billion as result of spillovers from the war in the Middle East. Georgieva said the now-paused war was testing the global economy, with a 13 percent cut in the daily flow of the world’s oil and a 20 percent cut in liquefied natural gas triggering a supply shock that had sent energy prices soaring, while disrupting supply chains. In prepared remarks ahead of next week’s meetings of the IMF and World Bank, Georgieva said the war had prompted the Fund to cut its global growth forecast, echoing a message she shared with Reuters on Monday. US President Donald Trump on Tuesday announced a two-week ceasefire with Iran, but Israel’s continued bombardment of Lebanon threatens to derail talks to forge a permanent peace.