The IMF approves new Flexible Credit Line for Colombia
The Executive Board of the International Monetary Fund (IMF) approved a new Flexible Credit Line for Colombia for about US $ 11,400 million with a two-year term.
Today, the Executive Board of the International Monetary Fund (IMF) approved a new two-year agreement in favor of Colombia in the framework of the Flexible Credit Line (FCL) for Special Drawing Rights (SDR) of COP $7,848 million (approximately US $11,400 million). This agreement replaces the previous one, adopted in 2016 for SDR for COP $8,180 million, and will continue to be considered by the Colombian authorities as a preventive line of financing.
The SDR is an instrument created by the IMF accessible only to countries with very strong economic fundamentals and solid institutional economic policy frameworks. It is used to deal with adverse events in the external sector, and, as such, it does not imply any condition by the IMF; also, its access is immediate.
The Executive Board of the IMF considered that Colombia continues to meet the criteria to access to this line of credit, and highlighted the strength of its institutional policy framework, particularly the inflation-targeting regime, the flexible exchange rate, the fiscal rule, and an effective financial supervision and regulation.
The renewal of the SDR is a vote of confidence by the IMF in the country and its economic authorities. At present, only Colombia and Mexico have access to this line.
To read the full press release, please visit: http://www.imf.org/en/News/Articles/2018/05/25/pr18196-imf-executive-board-approves-flexible-credit-line-arrangement-with-colombia