MercoPress. South Atlantic News Agency

Chile requests IMF US$ 23,8 billion, under the Flexible Credit Line

IMF Managing Director Kristalina Georgieva intends to recommend approval of the FCL arrangement for Chile

The International Monetary Fund (IMF) Executive Board met on Wednesday in an informal session to discuss a request from the Chilean authorities for a two-year arrangement under the Flexible Credit Line (FCL) with the IMF in an amount equivalent to SDR 17.443 billion (about US$23.8 billion or 1,000 percent of quota).

The Chilean authorities intend to treat the credit line as precautionary. This credit line helps safeguard against external shocks by providing countries with very strong policy frameworks and track records of economic performance with large, upfront access to IMF resources with no ex-post conditionalities.

On the basis of Chile’s very strong economic fundamentals, institutional policy frameworks, and track record, IMF Managing Director Kristalina Georgieva intends to recommend approval of the FCL arrangement for Chile when the IMF Executive Board meets again to take a decision in the following weeks. The IMF stands ready to continue to support Chile during these challenging times.