{ "title": "Chile Receives IMF´s First Short-term Liquidity Line", "publication": "IMF News, May 20, 2022", "sourceUrl": "https://www.imf.org/en/news/articles/2022/05/20/pr22164-chile-receives-imfs-first-short-term-liquidity-line", "canonical": "https://www.imf.org/en/news/articles/2022/05/20/pr22164-chile-receives-imfs-first-short-term-liquidity-line", "overlayPath": "/en/news/articles/2022/05/20/pr22164-chile-receives-imfs-first-short-term-liquidity-line/index.md", "summary": "Chile Receives IMF´s First Short-term Liquidity Line", "publishDate": "2022-05-20", "sections": [ { "heading": "Arrangement details", "content": "- The Chilean authorities accepted an offer of a Short-term Liquidity Line (SLL) arrangement amounting to about US$3.5 billion.\n- The amount equals \"145 percent of quota, the maximum amount under this arrangement.\"\n- The offer is for a one-year SLL arrangement.\n- The equivalent in SDR is \"SDR 2.529 billion.\"\n- The authorities also notified the IMF of their decision to exit the current two-year Flexible Credit Line (FCL) arrangement." }, { "heading": "Purpose and key features of the SLL", "content": "- The SLL is a revolving and renewable liquidity backstop created on April 21, 2020.\n- It is designed for members with very strong fundamentals and policy track records that face potential, moderate, short-term balance of payments needs.\n- Qualification criteria for support under the SLL are the same as for support under the FCL.\n- Disbursements:\n - Recipients can draw from the liquidity line at any time that balance of payments needs arise.\n - Disbursements are not phased nor tied to compliance with policy targets as in regular IMF-supported programs.\n- The Chilean authorities plan to treat the SLL as precautionary.\n- The SLL will complement existing buffers, support resilience, and provide a confidence signal on Chile’s very strong fundamentals and policies." }, { "heading": "Chile’s economic context and qualification", "content": "- Following a swift and wide-ranging policy response to the COVID-19 pandemic, Chile’s recovery is described as \"well-entrenched.\"\n- The authorities have recalibrated macroeconomic policies and built comfortable liquidity buffers, while maintaining macroeconomic stability and fiscal sustainability.\n- Chile qualifies for the SLL given:\n - \"very strong economic fundamentals and institutional policy frameworks,\"\n - a sustained track record of implementing very strong policies,\n - and the authorities’ commitment to maintain very strong policies in the future.\n- The SLL facilitates transition from the FCL since qualification criteria are the same." }, { "heading": "Executive Board / IMF statement highlights (Mr. Bo Li, Deputy Managing Director and Acting Chair)", "content": "- “I am delighted that Chile has accepted the Fund’s offer of an SLL, becoming the first user of this special and innovative instrument.”\n- Chile’s very strong policy frameworks are anchored in:\n - \"a long-standing structural fiscal balance rule,\"\n - \"credible inflation-targeting with a free-floating exchange rate,\"\n - \"and a sound financial system supported by effective regulation and supervision.\"\n- The statement notes:\n - \"Following an impressive vaccination campaign and an effective and well-coordinated policy response, the Chilean economy has rapidly recovered from the fallout of the Covid-19 pandemic.\"\n - The SLL \"will further support Chile’s external resilience by providing a revolving liquidity backstop in foreign exchange.\"" }, { "heading": "Procedural note on the SLL", "content": "- The Fund extends an offer of an SLL arrangement to those members that qualify; the IMF’s Board approves the extension of the offer.\n- The arrangement becomes effective once the Fund confirms receipt of the member’s signed written communication, including the acceptance of the offer and policy commitments.\n\nPress Release No. 22/164, May 20, 2022. International Monetary Fund.\n\n---\n\n\n References\n\n- Bo Li\n- Chile and the IMF\n- Press Releases\n- PRESS CENTER\n- see Press Release No. 20/227\n- see Press Release No. 20/180\n- https://www.imf.org/en/About/Factsheets/Sheets/2020/04/17/short-term-liquidity-line\n- Policy Paper No. 20/025\n- https://www.imf.org/en/home\n\nSource: https://www.imf.org/en/news/articles/2022/05/20/pr22164-chile-receives-imfs-first-short-term-liquidity-line" } ], "bullets": [ "[Markdown version](/en/news/articles/2022/05/20/pr22164-chile-receives-imfs-first-short-term-liquidity-line/index.md)", "[Structured JSON version](/en/news/articles/2022/05/20/pr22164-chile-receives-imfs-first-short-term-liquidity-line/index.json)", "[Bundle manifest](/en/news/articles/2022/05/20/pr22164-chile-receives-imfs-first-short-term-liquidity-line/bundle-manifest.json)", "Published: May 20, 2022", "The Chilean authorities accepted an offer of a Short-term Liquidity Line (SLL) arrangement amounting to about US$3.5 billion.", "The amount equals \"145 percent of quota, the maximum amount under this arrangement.\"", "The offer is for a one-year SLL arrangement.", "The equivalent in SDR is \"SDR 2.529 billion.\"", "The authorities also notified the IMF of their decision to exit the current two-year Flexible Credit Line (FCL) arrangement.", "The SLL is a revolving and renewable liquidity backstop created on April 21, 2020.", "It is designed for members with very strong fundamentals and policy track records that face potential, moderate, short-term balance of payments needs.", "Qualification criteria for support under the SLL are the same as for support under the FCL.", "Disbursements:", "The Chilean authorities plan to treat the SLL as precautionary.", "The SLL will complement existing buffers, support resilience, and provide a confidence signal on Chile’s very strong fundamentals and policies.", "Following a swift and wide-ranging policy response to the COVID-19 pandemic, Chile’s recovery is described as \"well-entrenched.\"", "The authorities have recalibrated macroeconomic policies and built comfortable liquidity buffers, while maintaining macroeconomic stability and fiscal sustainability.", "Chile qualifies for the SLL given:", "The SLL facilitates transition from the FCL since qualification criteria are the same.", "“I am delighted that Chile has accepted the Fund’s offer of an SLL, becoming the first user of this special and innovative instrument.”", "Chile’s very strong policy frameworks are anchored in:", "The statement notes:", "The Fund extends an offer of an SLL arrangement to those members that qualify; the IMF’s Board approves the extension of the offer.", "The arrangement becomes effective once the Fund confirms receipt of the member’s signed written communication, including the acceptance of the offer and policy commitments.", "[Bo Li](https://www.imf.org/en/About/senior-officials/Bios/bo-li)", "[Chile and the IMF](http://www.imf.org/external/country/CHL/index.htm)", "[Press Releases](https://www.imf.org/en/news/searchnews)", "[PRESS CENTER](http://presscenter.imf.org/)", "[see Press Release No. 20/227](https://www.imf.org/en/News/Articles/2020/05/29/pr20227-imf-executive-board-approves-two-year-flexible-credit-line-arrangement)", "[see Press Release No. 20/180](https://www.imf.org/en/News/Articles/2020/04/21/pr20180-imf-executive-board-covid-19-response-new-sll-enhance-adequacy-global-financial-safety-net)", "[https://www.imf.org/en/About/Factsheets/Sheets/2020/04/17/short-term-liquidity-line](https://www.imf.org/en/About/Factsheets/Sheets/2020/04/17/short-term-liquidity-line)", "[Policy Paper No. 20/025](https://www.imf.org/en/Publications/Policy-Papers/Issues/2020/04/21/IMF-COVID-19-Response-A-New-Short-Term-Liquidity-Line-to-Enhance-The-Adequacy-Of-The-Global-49356)", "[https://www.imf.org/en/home](https://www.imf.org/en/home)" ], "alternates": { "markdown": "/en/news/articles/2022/05/20/pr22164-chile-receives-imfs-first-short-term-liquidity-line/index.md", "json": "/en/news/articles/2022/05/20/pr22164-chile-receives-imfs-first-short-term-liquidity-line/index.json", "bundleManifest": "/en/news/articles/2022/05/20/pr22164-chile-receives-imfs-first-short-term-liquidity-line/bundle-manifest.json" }, "generatedAtUtc": "2026-09-26T01:14:57.137Z" }