Chile: Review Under the Flexible Credit Line Arrangement-Press Release; Staff Report; Staff Supplement; and Statement by the Executive Director for Chile
IMF Staff Country Reports, August 25, 2023
Source details
- Canonical URL
- Chile: Review Under the Flexible Credit Line Arrangement-Press Release; Staff Report; Staff Supplement; and Statement by the Executive Director for Chile
Other formats
Bibliographic details
- Published: August 25, 2023
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400252822.002
Key findings and qualification
- Chile continues to qualify for the Flexible Credit Line (FCL) by virtue of its very strong economic fundamentals and institutional policy frameworks, and sustained record of accomplishment of very strong macroeconomic policies.
- The FCL has provided a valuable buffer against tail risks and boosted market confidence by reinforcing Chile’s policy and institutional strengths.
Authorities’ stance and treatment of the arrangement
- In view of the still elevated external risks, the authorities have expressed a desire to maintain the current level of access and are committed to gradually exit the arrangement conditional on the evolution of external risks.
- The authorities intend to continue to treat the arrangement as precautionary.
External and domestic risks
- External downside risks:
- Possible abrupt global slowdown.
- Sharply tighter global financial conditions.
- Domestic risks:
- Potential discontent from unmet social demands.
- Deterioration in security.
- Uncertainty related to the health care sector.
Subject coverage and keywords
- Subject: External debt, Fiscal policy, Fiscal stance, Inflation, International organization, Metal prices, Monetary policy, Prices, Public debt
- Keywords: Caribbean, Chilean peso, FCL arrangement, FCL qualification criteria, Fiscal stance, Global, income tax reform, Inflation, inflation expectation, Metal prices, rate reduction
Content in this bundle
- Executive Summary