International Monetary Fund has warned that the global financial crisis had shifted to the world's poorest nations and 22 countries may need as much as USD 25 billion in additional funding in 2009 to cope with the downturn. It added that, based on its projections, the 22 countries could need up to USD 140 billion if global conditions were to deteriorate sharply.

Mr Dominique Strauss Kahn MD of IMF said that "I foresee mounting problems for developing countries, calling it the third wave of the crisis, which has spread from financial and credit markets into the consumer economy. I'm expecting a number of new or scaled-up loan agreements will appear very soon."

Under current IMF projections, a total balance of payments shock in 38 developing countries could amount to around USD 165 billion and increase to as much as USD 216 billion under a worst case scenario. The IMF said that reserves in the 22 countries are expected to fall below three months of imports with losses amounting to 25 billion, equivalent to about 80% of annual aid to poor countries over the past five years.

In addition, the IMF has identified 26 countries that are highly vulnerable to the crisis but may not immediately need additional financing. Among the 26 countries are Zambia, Vietnam, Angola, Ghana, Burundi, Ivory Coast, Haiti, Honduras, Liberia, Nigeria, Mongolia, Moldova, Papua New Guinea, Sudan, Albania and Kyrgyzstan.

(Sourced from www.financialexpress.com)