IMF Managing Director to recommend approval of US$11 billion FCL for Peru

10:40 | Washington D.C. (U.S.), May. 9.

International Monetary Fund (IMF) Managing Director Kristalina Georgieva intends to recommend the multilateral institution's board that it approve a request from Peru to obtain a Flexible Credit Line (FCL) of about US$11 billion in light of the South American country's very strong policy frameworks and track record.

The International Monetary Fund's Executive Board met in an informal session on Friday to discuss the Peruvian authorities' request for a two-year FCL with the IMF in the amount equaling 600% of Peru's quota.

"This credit line —available to countries with very strong policies and frameworks— can help safeguard economies against external shocks by providing large, upfront access to IMF resources with no ex post conditionality," read a release from the organization.

The authorities have indicated that they would treat the credit line as precautionary financing.

It must be noted the board convenes in the coming weeks to formally consider the request.

"The IMF stands ready to continue to support Peru during these challenging times," it concluded.

(END) NDP/MVB

Published: 5/9/2020

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IMF Managing Director to recommend approval of US$11 billion FCL for Peru

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