The authorities of Chile have asked the International Monetary Fund (IMF) for a flexible line of credit of around 23.8 billion dollars (23.07 billion francs) over a period of 2 years, the Washington institution announced on Tuesday. in a press release.
The country was shaken for six months by an unprecedented protest movement due to deep socio-economic inequalities. The social crisis ended with the coronavirus pandemic.
“As a precaution”
Chile’s request is expected to obtain IMF approval since its managing director Kristalina Georgieva intends to recommend to the Executive Board that it approve the request. The request will be reviewed in the coming weeks, the IMF said. “This line of credit makes it possible to protect (countries) against external shocks,” he explains, stressing that this instrument is provided to countries with “a very solid economic history to prevent and resolve crises”.
According to the IMF website, only three have used this flexible credit line so far: Colombia, Mexico and Poland. “None of them have drawn on their line of credit yet, but the LCM has provided these countries with valuable resources and helped build market confidence in times of heightened risk,” says the Funds. With regard to Chile, the authorities also intend to use this line of credit “as a precaution”, according to the IMF. (ats / nxp)
Created: 13.05.2020, 02h32
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