IMF approves new mechanism for short-term assistance to countries amid Covid-19
(VOVWORLD) - The International Monetary Fund has approved the creation of a short-term liquidity facility to assist countries in combating the economic impact of the coronavirus pandemic, said IMF Managing Director Kristalina Georgieva.
 IMF Managing Director Kristalina Georgieva. |
She said the IMF Executive Board approved the establishment of the Short-term Liquidity Line (SLL) to further strengthen the global financial safety net as part of the Fund’s COVID-19 response. The facility is a revolving and renewable backstop for member countries with very strong policies and fundamentals for those in need of short-term moderate balance of payments support. In these cases, the Short-term Liquidity Line will provide revolving access of up to 145 percent of quota. The IMF Chief said the Short-term Liquidity Line will further strengthen a country’s liquidity buffers and thus help in managing liquidity pressures. Complementing other agencies during the current crisis, the facility will fill a critical gap in the Fund’s toolkit and help to facilitate a more efficient allocation of resources.