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The Minister of Finance, Ignacio Briones, said on Tuesday that the US $ 23.8 billion requested by the Central Bank from the International Monetary Fund (IMF) it is not a loan to the Government of ChileThey are resources to strengthen the “solid position” of the organism.
It was during this afternoon that the IMF confirmed the request for a two-year Flexible Line of Credit (FCL), which will allow it increase the availability of international liquidity by more than 60% immediate access.
In this context, the Secretary of State clarified that the resources they are not intended to finance public spending, rather, “it can be seen as additional insurance to the solid position that the Central Bank already has to face external shocks, particularly in the face of a volatile international scenario.”
“It is a precautionary facility,” he said.
The aforementioned by the holder of the portfolio is in line with that reported by the IMF, from which they pointed out that this line of credit aims to protect economies in the event of external shocks, by providing broad and up-front access to resources.
This line is not subject to the conditionality of traditional IMF adjustment programs for countries facing a balance of payments crisis.
The FCL does not impose prior actions on the country that contracts it or ex post conditionalities in the event of disbursements. It is enough that the country meets the demanding qualification criteria, as happened with Chile, after the IMF’s managing director, Kristalina Georgieva, finally recommended the request to the Executive Board of the international organization.
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