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IMF working out convenient mechanism for all states to allocate 10% of unused SDRs to Ukraine – Finance Minister

KYIV. May 6 (Interfax-Ukraine) – The International Monetary Fund (IMF) is working out a convenient mechanism for all countries to allocate 10% of unused Special Drawing Rights (SDR) to Ukraine and considers this to be quite real, Finance Minister Serhiy Marchenko said.

"Now the head of the IMF, Kristalina Georgieva, is working with the fund’s team to work out the mechanics so that it is a convenient mechanism for all countries. So that they can use this option. That is, the IMF believes in this option, sees it as possible," he said in an interview to Interfax-Ukraine.

Marchenko added that it could be a collective action, conditionally of all countries of the world in support of Ukraine.

"Now they are working on it. I hope that such mechanisms will be found. But there are specific details. For example, at the EU level there is a legislative ban on financing the budget deficit through such instruments. So, perhaps this will require the EU to regulate accordingly. But in principle, the mechanism is effective. We believe that this can be ensured," the minister said.

He noted that the world’s largest economies, in particular Australia, Austria, Canada, France, Germany, Italy, Japan, Britain, and the United States own unallocated SDRs. According to the minister, the matter concerns tens and hundreds of billions of dollars.