IMF Executive Board Receives Request for Flexible Credit Line Arrangement with Peru

Washington: The International Monetary Fund’s (IMF) Executive Board met in an informal session [1] today 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, equaling 600 percent of Peru’s quota). This credit line, available to countries with very strong policies and frameworks, can help safeguard economies against external shocks by providing large, upfront access to IMF resources with no ex post conditionality. The authorities have indicated that they would treat the credit line as precautionary financing.

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 to formally consider the request. The IMF stands ready to continue to support Peru during these challenging times.