The International Monetary Fund (IMF) has warned that Sri Lanka style protests could break out in other countries if there is no proper Government support.
Governments need to subsidise the cost of food and energy for the poorest members of society, the head of the International Monetary Fund (IMF) Kristalina Georgieva told the BBC.
Kristalina Georgieva said that the support needs to be provided “in a very targeted manner, preferably by providing subsidies directly to people”.
“There are two priorities, one the very poor people, segments of society that are now struggling with high food and energy prices. The second, she added, is to support those businesses that have been most damaged by the war in Ukraine,” Georgieva told the BBC.
Georgieva is also concerned about the impact those higher borrowing costs will have on governments who have to repay huge debts they took on to get through the pandemic. With that in mind, she said governments needed to be “very careful” about how much money they spent and what they spent it on.