The International Monetary Fund is working on new aid for Ukraine, IMF Managing Director Kristalina Georgieva met with EU leaders to discuss increasing budget support for Ukraine, the Financial Times reports with reference to a source.

 As reported, "the IMF is studying ways to increase its direct assistance to Kyiv, while at the same time moving towards a full-fledged lending program, subjecting the country to certain economic and financial conditions."

 IMF Managing Director Kristalina Georgieva met with EU leaders in New York, a source briefed on the meeting said, adding that a package to provide "budgetary support" to Kyiv was discussed.

 The IMF is also considering expanding emergency aid through the so-called food shock window. The facility, which is intended for countries struggling with rising food prices, is expected to amount to about $1.3 billion in additional funding, and "it is hoped that the board of directors will approve it before the start of the annual meeting in mid-October."

 The fund has also been working on "a monitoring tool to provide a basis for policy recommendations and coordination that can be used for a full-fledged program when circumstances permit," said Julie Kozak, the IMF's Ukraine observer.

 The instruments expand on previous IMF assistance, including a $1.4 billion emergency loan and an account opened in April to channel grants and loans from donors. Only $2.19 billion was transferred through Canada and Germany.