IMF opens short term lines of credit

The International Monetary Fund (IMF) will direct the resources to those economies suffering the most at finding financing.

Wednesday, October 29, 2008

The IMF announced yesterday its decision to increase its efforts to support those countries affected by the crisis, and is considering advancing liquidity for short periods, but on the condition that proper administration be of said funds be carried out.

The number 2 man at the Fund, John Lipsky, said that the institution is looking at creating a loan program to provide liquidity in the short term to "countries with healthy bases, that are temporarily exposed to the financing pressures."

More on this topic

IMF Grants $950 Million Credit Line to Guatemala

March 2009

The 16-month line of credit will strengthen the country’s international position and monetary reserves.

Gabriel Lopetegui of the IMF said that "it is a precautionary agreement that is not expected to be used, but it is there to serve as a shield for the country."

An article in elPeriódico of Guatemala indicated that the funds could be used to "address balance of payments issues such as capital flight, devaluation or a sharp drop in foreign exchange earnings."

FMI grants $800 million to El Salvador

January 2009

The directory of the IMF approved a 14 month "stand-by" credit line, that will allow the country to tap $800 million.

Laprensagrafica.com reports: "'These substantial IMF funds will increment the liquidity reserves of the economy and will contribute to strengthen the trust in El Salvador's financial system.', stated Murilo Portugal, sub Manager and acting president of the the Directory."

$800 million for El Salvador according to the IMF

December 2008

The objectives of the Government and the IMF, with the approval of this credit, is to provide confidence for investors and to back up the country's financial system.

According to the regional IMF representative, this credit is only "precautionary" and authorities in the country do not intent to use it, "this is about trying to provide a sign of confidence for investors," he added.

Salvadoran Government and IMF analyze line of credit

November 2008

The Government is talking of the possibility of getting an emergency line of credit for $1 billion, however the IMF is cautious and has not released the amount it is studying.

Yesterday, Alfred Schipke, the resident regional representative of the IMF, confirmed that they are jointly studying the feasibility of a preventive stand up, an emergency loan that will not necessarily be used immediately.

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