Chile: Request for an Arrangement Under the Flexible Credit Line-Press Release; Staff Report; and Staff Supplement

May 29, 2020

Preview Citation

Format: Chicago

Chile: Request for an Arrangement Under the Flexible Credit Line-Press Release; Staff Report; and Staff Supplement, (USA: International Monetary Fund, 2020) accessed November 21, 2024

Summary

This paper explores Chile’s Request for an Arrangement Under the Flexible Credit Line (FCL). Chile qualifies for the FCL by virtue of its very strong fundamentals, institutional policy frameworks, track record of economic performance and policy implementation and commitment to maintain such policies in the future. Notwithstanding its very strong fundamentals and policy settings, Chile’s open economy is exposed to substantial external risks as a result of the ongoing coronavirus disease 2019 outbreak, including a significant deterioration in global demand for Chilean exports, a sharp decline or reversal of capital inflows toward emerging markets, and an abrupt tightening of global financial conditions. The authorities intend to treat the FCL arrangement as precautionary and temporary, and to exit the arrangement as soon as the 24-month period is completed, conditional on a reduction of risks at the time of the mid-term review.

Subject: Balance of payments, Credit, Current account, Exports, External debt, Foreign exchange, International trade, Money, Public debt

Keywords: CR, Credit, Current account, Debt service, Exchange rate, Exports, FCL arrangement, Fund, Global, ISCR, Lending exposure, Open economy, Peak fund Exposure, Policy, Policy implementation

Publication Details

Pages:

76
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2020/183
Stock No:

1CHLEA2020003
ISBN:

9781513545998
ISSN:

1934-7685

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