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WASHINGTON — The International Monetary Fund said Tuesday that it approved a new lending tool that can better help countries cope with economic crises.
The new Precautionary and Liquidity Line can be used in broad circumstances, “including as insurance against future shocks and as a short-term liquidity window” between six months and two years. A country can now borrow up to 10 times its contributions to the IMF to help pay its bills.
The credit line can “address the needs of crisis bystanders during times of heightened regional or global stress and break the chains of contagion,” the fund said.
Denver Post wire reports
