IMF and Colombia agree on a new credit
The agency agreed on a Flexible Credit Line valued at 9,800 million dollars with Colombia
The Executive Board of the International Monetary Fund (IMF) approved a new two-year agreement in favor of Colombia within the framework of the Flexible Credit Line (LCF) for an approximate amount of 9,800 million dollars, as reported in a statement.
The instrument is designed for crisis prevention and mitigation of external risks. The IMF explained that Colombia meets the criteria for access to these resources, by virtue of the solidity of its foundations and institutional frameworks of economic policy.
The Colombian authorities, pending the next presidential elections in May, canceled the previous agreement they had with the Fund in this regard, and have stated their intention to assign the new one a precautionary nature to reduce its use progressively as the risks are reduced. globally.
The IMF’s FCL allows beneficiary countries to use it at any time and is granted to deal flexibly with pressures on the balance of payments and serve as a safeguard against external risks, mainly.
Colombia maintains access to the FCL since 2009, and this is the country’s ninth agreement to access this instrument. Before the pandemic, the country had been gradually reducing access in agreements under the FCL.
K. Tovar
Source: IMF
