The International Monetary Fund Monday said that Colombia is seeking a
10.4 billion dollar credit line as a precautionary step to cope with
the global financial and economic crisis.
Under the IMF’s new credit scheme designed to throw a cash lifeline
to countries hit by the global economic crisis, Colombian authorities
are seeking a one-year arrangement for 900 percent of its quota, or
about 10.4 billion dollars, IMF managing director Dominique
Strauss-Kahn said in a statement.
“I welcome the announcement by
finance minister Oscar Ivan Zuluaga and central bank governor Jose
Dario Uribe that Colombia is interested in a one-year precautionary
arrangement under the IMF?s Flexible Credit Line (FCL),” Strauss-Kahn
“I am very pleased by this positive response to the
invitation I extended to strongly performing economies to use this new
instrument to bolster international confidence on the strength and
sustainability of their policy framework.”
Strauss-Kahn said he intended “to move ahead rapidly” in seeking IMF executive board approval of the request.
joins Poland in requesting a line of credit from the 185-nation IMF,
which launched its no-strings-attached FCL in late March to member
countries with strong economic track records.
Poland has requested a 20-billion-dollar line of credit under the FCL, which allows a country to draw funds at any time.
Mexico became the first to win approval for the new credit line Friday, gaining access to a record 47 billion dollars.
has a sustained record of sound economic policies, and has very strong
economic fundamentals and institutional and policy frameworks,”
“The Colombian authorities? have responded
appropriately to the global financial crisis, and have demonstrated a
commitment to maintaining this solid record,” he added.
47-billion-dollar credit line to Mexico was the largest financial
arrangement in the 64-year-old institution’s history.
not had to tap the IMF for credit in a decade. The IMF said the credit
line was justified by Mexico’s strong track record of solid growth with
low inflation, steady reductions in public spending, a contained
deficit, strong corporate earnings and a well capitalized banking
Last week the IMF forecast a prolonged, deep global recession, with recovery slow and difficult.
Other potential candidates for an IMF credit line are Brazil, Chile, South Korea, the Czech Republic and Singapore. (AFP)