IMF board approves $18.5 bln flexible credit line for Chile

the Worldwide Financial Fund (IMF) headquarters constructing is seen in Washington, U.S., April 8, 2019. REUTERS/Yuri Gripas

Aug 29 (Reuters) – The Government Board of the Worldwide Financial Fund (IMF)authorised a versatile credit score line of round $18.5 billion for Chile to “increase buffers and supply insurance coverage in opposition to hostile eventualities,” the IMF mentioned on Monday.

Chilean authorities intend to deal with the credit score line as “precautionary” and plan to exit the association when situations enable, IMF Managing Director Kristalina Georgieva mentioned in a press release.

Chile additionally knowledgeable the IMF of the choice to cancel an current short-term liquidity line of round $3.3 billion, the fund mentioned.

The credit score line is a precautionary facility subscribed by Chile’s central financial institution and finance ministry, IMF nation head Ana Corbacho mentioned in a information convention.

Chile certified for the versatile credit score line attributable to its “robust financial fundamentals and institutional coverage frameworks” in addition to its dedication to sustaining robust insurance policies sooner or later, the IMF mentioned.

Nonetheless, Chile is now “going through a marked enhance in international dangers,” Georgieva mentioned.

Reporting by Kylie Madry and Rodrigo Campos; Further reporting by Natalia Ramos; Modifying by Anthony Esposito and Sandra Maler

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