WASHINGTON (Pakistan Point News / Sputnik - 09th May, 2020) The head of the International Monetary Fund (IMF) is recommending that the executive board approve Peru's request for an $11 billion credit line, the fund said in a statement.
"[The] IMF Executive Board met... to discuss the Peruvian authorities' request for a two-year Flexible Credit Line (FCL) with the IMF in the amount of SDR 8.007 billion (about US$11 billion)," the statement said on Friday. "In light of Peru's very strong policy frameworks and track record, IMF Managing Director Kristalina Georgieva intends to recommend IMF Executive Board approval of the FCL arrangement request when the board convenes in the coming weeks."
The credit line can help safeguard economies against external shocks by providing access to IMF resources with no ex post conditionality, according to the release.
Peru's government has indicated it would treat the credit line as precautionary financing, the release added.
