IMF Executive Board Approves $18.5 Billion Flexible Credit Line for Chile

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the headquarters building of the International Monetary Fund (IMF) is seen in Washington, U.S., April 8, 2019. REUTERS/Yuri Gripas

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Aug 29 (Reuters) – The Executive Board of the International Monetary Fund (IMF) has approved a flexible line of credit of around $18.5 billion for Chile to “boost reserves and provide insurance against adverse scenarios,” the IMF said on Monday.

Chilean authorities intend to treat the credit line as “precautionary” and plan to terminate the arrangement when conditions permit, IMF Managing Director Kristalina Georgieva said in a statement.

Chile also notified the IMF of the decision to cancel an existing short-term liquidity line of about $3.3 billion, the fund said.

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The credit line is a precautionary facility underwritten by Chile’s Central Bank and Finance Ministry, IMF chief Ana Corbacho told a news conference.

Chile qualified for the flexible credit line because of its “solid economic fundamentals and institutional policy frameworks” as well as its commitment to maintaining strong policies in the future, the IMF said.

However, Chile is now “facing a marked increase in global risks”, Georgieva said.

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Reporting by Kylie Madry and Rodrigo Campos; Additional reporting by Natalia Ramos; Editing by Anthony Esposito and Sandra Maler

Our standards: The Thomson Reuters Trust Principles.

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