{ "title": "IMF Executive Board Approves Two-Year US$18.5 Billion Flexible Credit Line for Chile", "publication": "IMF News, August 29, 2022", "sourceUrl": "https://www.imf.org/en/news/articles/2022/08/29/pr22294-chile-imf-executive-board-approves-two-year-flexible-credit-line-for-chile", "canonical": "https://www.imf.org/en/news/articles/2022/08/29/pr22294-chile-imf-executive-board-approves-two-year-flexible-credit-line-for-chile", "overlayPath": "/en/news/articles/2022/08/29/pr22294-chile-imf-executive-board-approves-two-year-flexible-credit-line-for-chile/index.md", "summary": "IMF Executive Board Approves Two-Year US$18.5 Billion Flexible Credit Line for Chile", "publishDate": "2022-08-29", "sections": [ { "heading": "Summary", "content": "- The Executive Board of the International Monetary Fund approved a two-year Flexible Credit Line (FCL) arrangement for Chile in the amount of SDR 13.954 billion (about US$18.5 billion).\n- The Chilean authorities intend to treat the FCL as precautionary.\n- The authorities notified the Fund of their decision to cancel the existing Short-term Liquidity Line (SLL) of SDR 2.529 billion (about US$3.3 billion)." }, { "heading": "Purpose and key features of the FCL", "content": "- The FCL can be drawn at any time and is designed to flexibly address both actual and potential balance of payments needs.\n- Drawings under the FCL are not phased nor tied to ex-post conditionality as in regular IMF-supported programs.\n- The FCL will augment Chile’s precautionary reserve buffers on a temporary basis and provide substantial insurance against a broad range of risks." }, { "heading": "Rationale and qualification for Chile", "content": "- Chile qualifies for the FCL by virtue of its very strong economic fundamentals and institutional policy frameworks, and a sustained track record of implementing very strong policies.\n- Qualification criteria for an arrangement under the FCL are the same as for the SLL.\n- The Executive Board approval cites Chile’s commitment to maintaining very strong policies in the future." }, { "heading": "Risks and scenarios the FCL addresses", "content": "- The FCL is intended to provide insurance against:\n - a possible abrupt global slowdown;\n - commodity price shocks;\n - spillovers from Russia’s war in Ukraine;\n - a sharp tightening of global financial conditions." }, { "heading": "Authorities’ actions and intentions", "content": "- The Chilean authorities intend to treat the FCL as precautionary and to exit the arrangement when external conditions allow.\n- The authorities cancelled the existing SLL of SDR 2.529 billion (about US$3.3 billion), consistent with current Fund policies." }, { "heading": "Policy frameworks and institutional strengths highlighted", "content": "- Long-standing structural fiscal balance rule.\n- Credible inflation targeting with a flexible exchange rate.\n- Sound financial system supported by effective regulation and supervision.\n- Continued implementation of very strong policies to mitigate risks, preserve macroeconomic stability, and support vulnerable groups while advancing ambitious reforms." }, { "heading": "Key statistics and references preserved exactly from the source", "content": "- FCL amount: SDR 13.954 billion (about US$18.5 billion).\n- Access: 800 percent of quota.\n- SLL cancelled: SDR 2.529 billion (about US$3.3 billion); 145 percent of quota.\n- FCL establishment date: March 24, 2009 (see Press Release No. 09/85).\n- Exchange rate used for US$ amounts: SDR 0.755229/US$ as of August 2, 2022.\n- Press Release No.: 22/294.\n- Date of press release: August 29, 2022.\n\nIMF Executive Board Approves Two-Year US$18.5 Billion Flexible Credit Line for Chile\n\n---\n\n\n References\n\n- https://www.imf.org/-/media/images/imf/bios/imfboard.jpg\n- The Executive Board\n- Chile and the IMF\n- IMF Quotas -- A Factsheet\n- Special Drawing Rights (SDRs) -- A Factsheet\n- Press Releases\n- PRESS CENTER\n- https://www.imf.org/en/home\n\nSource: https://www.imf.org/en/news/articles/2022/08/29/pr22294-chile-imf-executive-board-approves-two-year-flexible-credit-line-for-chile" } ], "bullets": [ "[Markdown version](/en/news/articles/2022/08/29/pr22294-chile-imf-executive-board-approves-two-year-flexible-credit-line-for-chile/index.md)", "[Structured JSON version](/en/news/articles/2022/08/29/pr22294-chile-imf-executive-board-approves-two-year-flexible-credit-line-for-chile/index.json)", "[Bundle manifest](/en/news/articles/2022/08/29/pr22294-chile-imf-executive-board-approves-two-year-flexible-credit-line-for-chile/bundle-manifest.json)", "Published: August 29, 2022", "The Executive Board of the International Monetary Fund approved a two-year Flexible Credit Line (FCL) arrangement for Chile in the amount of SDR 13.954 billion (about US$18.5 billion).", "The Chilean authorities intend to treat the FCL as precautionary.", "The authorities notified the Fund of their decision to cancel the existing Short-term Liquidity Line (SLL) of SDR 2.529 billion (about US$3.3 billion).", "The FCL can be drawn at any time and is designed to flexibly address both actual and potential balance of payments needs.", "Drawings under the FCL are not phased nor tied to ex-post conditionality as in regular IMF-supported programs.", "The FCL will augment Chile’s precautionary reserve buffers on a temporary basis and provide substantial insurance against a broad range of risks.", "Chile qualifies for the FCL by virtue of its very strong economic fundamentals and institutional policy frameworks, and a sustained track record of implementing very strong policies.", "Qualification criteria for an arrangement under the FCL are the same as for the SLL.", "The Executive Board approval cites Chile’s commitment to maintaining very strong policies in the future.", "The FCL is intended to provide insurance against:", "The Chilean authorities intend to treat the FCL as precautionary and to exit the arrangement when external conditions allow.", "The authorities cancelled the existing SLL of SDR 2.529 billion (about US$3.3 billion), consistent with current Fund policies.", "Long-standing structural fiscal balance rule.", "Credible inflation targeting with a flexible exchange rate.", "Sound financial system supported by effective regulation and supervision.", "Continued implementation of very strong policies to mitigate risks, preserve macroeconomic stability, and support vulnerable groups while advancing ambitious reforms.", "FCL amount: SDR 13.954 billion (about US$18.5 billion).", "Access: 800 percent of quota.", "SLL cancelled: SDR 2.529 billion (about US$3.3 billion); 145 percent of quota.", "FCL establishment date: March 24, 2009 (see Press Release No. 09/85).", "Exchange rate used for US$ amounts: SDR 0.755229/US$ as of August 2, 2022.", "Press Release No.: 22/294.", "Date of press release: August 29, 2022.", "[https://www.imf.org/-/media/images/imf/bios/imfboard.jpg](https://www.imf.org/-/media/images/imf/bios/imfboard.jpg)", "[The Executive Board](https://www.imf.org/external/np/sec/memdir/eds.aspx)", "[Chile and the IMF](http://www.imf.org/external/country/CHL/index.htm)", "[IMF Quotas -- A Factsheet](https://www.imf.org/en/about/factsheets/sheets/2022/imf-quotas)", "[Special Drawing Rights (SDRs) -- A Factsheet](https://www.imf.org/en/about/factsheets/sheets/2023/special-drawing-rights-sdr)", "[Press Releases](https://www.imf.org/en/news/searchnews)", "[PRESS CENTER](http://presscenter.imf.org/)", "[https://www.imf.org/en/home](https://www.imf.org/en/home)" ], "alternates": { "markdown": "/en/news/articles/2022/08/29/pr22294-chile-imf-executive-board-approves-two-year-flexible-credit-line-for-chile/index.md", "json": "/en/news/articles/2022/08/29/pr22294-chile-imf-executive-board-approves-two-year-flexible-credit-line-for-chile/index.json", "bundleManifest": "/en/news/articles/2022/08/29/pr22294-chile-imf-executive-board-approves-two-year-flexible-credit-line-for-chile/bundle-manifest.json" }, "generatedAtUtc": "2026-09-26T01:28:30.170Z" }