Policy Papers

Precautionary and Liquidity Line - Operational Guidance Note

April 30, 2025

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Format: Chicago

International Monetary Fund. Strategy, Policy, & Review Department "Precautionary and Liquidity Line - Operational Guidance Note", Policy Papers 2025, 014 (2025), accessed June 17, 2025, https://doi.org/10.5089/9798229009942.007

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Summary

This note provides operational guidance on the use of the Precautionary and Liquidity Line (PLL). After an overview of the instrument explaining its specific nature, the operational issues are grouped into six areas: an outline of the process and specific steps that need to be followed if a member expresses interest in an arrangement; guidance on determining qualification of a member; guidance on access, phasing, ex-post conditionality, review process; guidance on purchases; guidance on communication of expiration or cancellation; and guidance on interaction with other instruments. The note is an aid to the implementation of the policy and its underlying principles. If there is any instance in which a provision of the guidance note or its implementation conflicts with Board policy, Board policy prevails. It will be revised as needed, for example, following relevant policy reviews.

Subject: Anti-money laundering and combating the financing of terrorism (AML/CFT), Balance of payments, Balance of payments need, Crime, Financial institutions, Fiscal policy, Lines of credit, Macro-fiscal framework

Keywords: Anti-money laundering and combating the financing of terrorism (AML/CFT), Balance of payments need, Chicago Board option, ETF volatility index, Global, Guidance Notes, IMF, Lines of credit, Macro-fiscal framework, PLL, PLL arrangement, PLL request, Precautionary and Liquidity Line, Precautionary Toolkit, Transparency policy

Publication Details

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